The quantity of Sicard wristwatches demanded each month is related to the unit price by the equation , where p is measured in dollars and x in units of a thousand. Find the marginal revenue function .

Question

The quantity of Sicard wristwatches demanded each month is related to the unit price by the equation  , where p is measured in dollars and x in units of a thousand. Find the marginal revenue function  .

Quizplus · Accepted Answer

Marginal revenue is the derivative of the revenue function with respect to quantity. In this case, the revenue function is given by R(x) = xp(x) = (120 - 0.015x)x. Taking the derivative with respect to x, we get MR(x) = p(x) + xp'(x) = 120 - 0.03x. Substituting p(x) = 120 - 0.015x from the demand equation, we get MR(x) = 118.5 - 0.03x. Converting x to units of a thousand, we get MR(x) = 118500 - 30x. Therefore, the marginal revenue function is 11eb12b0_aa1e_04f0_b394_eb4db5356d65_TB7866_11.

The Quantity of Sicard Wristwatches Demanded Each Month Is Related