Question

The revenue function is given by R(x) = 100x – x² – x³. Find

1. The demand function.
2. Marginal revenue function.

Answer 1

Given: R(x) = 100x – x² – x³

i. We know, R(x) = P(x) × x

∴ `P(x) = (R(x))/x`

= `(100x - x^2 - x^3)/x`

= 100 – x – x²

ii. We know, `M.R. = (dR)/dx`

= `d/dx (100x - x^2 - x^3)`

= 100 – 2x – 3x²