Ask Question
25 April, 08:03

The total revenue and total cost functions for manufacturing Items are:

TR (q) = -5q2+80q and TC (q) = q3-12q2+60q+60,

where q is measured in hundreds of Items and total revenue and total cost are given in hundreds of dollars.

(a) Determine the quantity at which marginal revenue is 62 dollars per Thing.

+2
Answers (1)
  1. 25 April, 10:04
    0
    1.8 hundred or 180 Items

    Explanation:

    Total Revenue is the total value of goods & services sold.

    TR = Price x Quantity

    Total Revenue = 80q - 5q^2

    Marginal Revenue is the change in Total Revenue, when an additional unit is sold.

    MR = ΔTR / ΔQ

    = d (80q - 5q^2) / dq

    MR = 80 - 10q

    To find : Quantity 'q' at which Marginal Revenue (MR) = 62

    So, 80 - 10q = 62

    80 - 62 = 10q

    18 = 10q

    q = 18 / 10

    = 1.8 hundred items

    = 180 items
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The total revenue and total cost functions for manufacturing Items are: TR (q) = -5q2+80q and TC (q) = q3-12q2+60q+60, where q is measured ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers