help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Suppose that a wholesaler expects that his monthly revenue, in dollars, for an electronic game will be R(x) = 190x - 0

Suppose that a wholesaler expects that his monthly revenue, in dollars, for an electronic game will be R(x) = 190x - 0

Math

Suppose that a wholesaler expects that his monthly revenue, in dollars, for an electronic game will be R(x) = 190x - 0.14x , 05 x $ 8DO where x is the number of units sold. Find his marginal revenue and interpret it when the quantity sold is the following. (a) x = 400 $ Interpret the marginal revenue. O This is the additional revenue from the 401st unit. O The sale of the 401st unit results in a loss of this amount. O The sale of the 400th unit results in a loss of revenue of this amount. This is the additional revenue from the 400th unit. (b) * = 700 Interpret the marginal revenue. The sale of the 701st unit results in a loss of this amount. This is the additional revenue from the 701st unit. This Is the additional revenue from the 400th unit. The sale of the 700th unit results in a loss of revenue of this amount. 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Answer:

a) option A

b) option A

Step-by-step explanation

we have   ?R = 190x−0.14x2?

marginal revenue is given by  ?M(x) = dxdR? = dxd?(190x−0.14x2) = 190−0.28x?

by definition it means the increase in revenue when an additional unit sold 

logic :  we have  ?R(x∗+dx) =R(x∗) + dxdR(x∗)? Δx?

so let   ?Δx = 1?

so ?R(x∗+1) = R(x∗) + dxdR(x∗)??

clearly ?dxdR(x∗)??  holds true with respect to definition 

now at ?x = 400 ?  ,  ?M(400) = 190−0.28×400 = 78?

since we have computed marginal revenue at ?x=400?  , so ?M(400)=78?  is the additional

revenue from ?x = 400+1?  i:e 401st unit , so option A is correct 

b) now at  ?x = 700 ?   ,  ?M(700) = 190−0.28×700 = −6?

since we have computed marginal revenue at ?x=700?  , so  ?M(700)=−6?  is the additional

revenue from ?x = 700+1?  i:e 701st unit  

note : since this negative which means a loss so option A is most appropriate 

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)