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

The marginal revenue function is the derivative of the revenue function with respect to x.

R(x) = xp(x) = x(11 - 2x/1000)

Taking the derivative with respect to x, we get:

MR(x) = dR/dx = 11 - 4x/1000

Substituting the given equation for x, we get:

MR(p) = 11 - 4(1000ln(p/10))/1000

Simplifying:

MR(p) = 11 - 4ln(p/10)

Therefore, the correct choice is B.

The Quantity of Sicard Wristwatches Demanded Each Month Is Related