Total revenue is in dollars and x is the number of units. Suppose that the total revenue function for a commodity is Find the marginal revenue at and tell what it predicts about the sale of the next unit. Round your answer to two decimal places.
A) 13.80. The selling of the next unit increases revenue by $13.80.
B) 12.60. The selling of the next unit increases revenue by $12.60.
C) -414.00. The selling of the next unit decreases revenue by $414.
D) -30.00. The selling of the next unit decreases revenue by $30.
E) -15.00. The selling of the next unit decreases revenue by $15.

Question

Total revenue is in dollars and x is the number of units. Suppose that the total revenue function for a commodity is  Find the marginal revenue at  and tell what it predicts about the sale of the next unit. Round your answer to two decimal places. ​
A) 13.80. The selling of the next unit increases revenue by $13.80. 
B) 12.60. The selling of the next unit increases revenue by $12.60. 
C) -414.00. The selling of the next unit decreases revenue by $414. 
D) -30.00. The selling of the next unit decreases revenue by $30. 
E) -15.00. The selling of the next unit decreases revenue by $15.

Quizplus · Accepted Answer

To find the marginal revenue, we need to take the derivative of the total revenue function with respect to the number of units (x). 
Differentiating 11x - 0.2x^2 with respect to x gives us:
11 - 0.4x
We can plug in x = 425 to find the marginal revenue at that point:
11 - 0.4(425) = 11 - 170 = -159
Since the marginal revenue is negative, selling the next unit will decrease revenue. 
Therefore, the correct choice is B, which is the closest to the calculated marginal revenue of -159, rounded to two decimal places.

Total Revenue Is in Dollars and X Is the Number