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Given Cost and Price (demand) functions C(q)=110q+45000 and p(q)=−2.7q+950, what is the marginal revenue when profits are $15000? The marginal revenue is $ If there are two correct answers, separate them with a comma. If necessary, round to two decimal places.

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Final answer:

To find the marginal revenue when profits are $15000, solve for the quantity (q) that corresponds to a profit of $15000 using the profit function. The quantity is approximately 349.99. Then, calculate the derivative of the revenue function with respect to q and substitute the value of q to find the marginal revenue. The marginal revenue is approximately $9.06.

Step-by-step explanation:

To find the marginal revenue when profits are $15000, we need to determine the quantity (q) that corresponds to a profit of $15000. We can use the profit function, which is given by:

Profit = Revenue - Cost

Since Profit is given as $15000, we can set up the equation:

15000 = p(q) - C(q)

Substituting the given cost and price functions, we have:

15000 = (-2.7q + 950) - (110q + 45000)

Simplifying the equation, we get:

15000 = -112.7q + 54450

112.7q = 54450 - 15000

112.7q = 39450

q = 39450 / 112.7

q ≈ 349.99

To find marginal revenue, we can calculate the derivative of the revenue function. The revenue function is:

R(q) = p(q) * q

Taking the derivative of R(q) with respect to q, we get:

R'(q) = p'(q) * q + p(q)

Substituting the given price function, we have:

R'(q) = -2.7 * q + 950 + (-2.7q + 950)

Simplifying the equation, we get:

R'(q) = -5.4q + 1900

Substituting the value of q we found earlier, we have:

R'(349.99) ≈ -5.4(349.99) + 1900

R'(349.99) ≈ -1890.94 + 1900

R'(349.99) ≈ 9.06

Therefore, the marginal revenue when profits are $15000 is approximately $9.06.

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