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The marginal revenue function on sales of q units of a product is R'(q)=240-18√q dollars per unit.


Estimate the total revenue if sales are 100 units.

What is the marginal revenue at 100 units?

Estimate the total revenue if sales are 101 units.

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Verified Answer :

nobillionaireNobley

Total revenue R(q) = ∫R'(q) dq = ∫(240 - 18√q)dq = 240q - 12q^3/2
R(100) = 240(100) - 12(100)^3/2 = 24000 - 12(1000) = $12,000

Marginal revenue at 100 units R'(100) = 240 - 18√100 = 240 - 18(10) = $60

Revenue at 101 units = R(101) = 240(101) - 12(101)^3/2 = 24,240 - 12,180 = $12,060

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