Question

If the marginal revenue function is R'(x) = 1500 – 4x – 3x². Find the revenue function and average revenue function

Answer 1

Given marginal revenue function

MR = R’(x)= 1500 – 4x – 3x²

Revenue function R(x) = `int "R'"(x)  "d"x + "c"`

R = `int (1500 - 4x - 3x^2)  "d"x + "c"`

R = 1500x – 2x² – x³ + c

When x = 0

R = 0

⇒ c = 0

So R = 1500x – 2x² – x³ 

Average revenue function P = `"R"/x` ⇒ 1500 – 2x – x²