Tamil Nadu Board of Secondary EducationHSC Commerce Class 11th

# The demand curve of a commodity is given by p = 50-x5, find the marginal revenue for any output x and also find marginal revenue at x = 0 and x = 25? - Business Mathematics and Statistics

Sum

The demand curve of a commodity is given by p = (50 - x)/5, find the marginal revenue for any output x and also find marginal revenue at x = 0 and x = 25?

#### Solution

Given that p = (50 - x)/5

Revenue, R = px

= ((50 - x)/5)x

= (50x - x^2)/5

= 1/5 (50x – x2)

Marginal Revenue (MR) = "d"/"dx"(R)

= "d"/"dx" 1/5 (50x - x^2)

= 1/5 "d"/"dx" (50x - x^2)

= 1/5 (50 - 2x)

Marginal revenue when x = 0 is, MR = 1/5 (50 – 2 × 0)

= 1/5 xx 50

= 10

When x = 25, marginal revenue is MR = 1/5 (50 – 2 × 25)

= 1/5 (50 - 50)

= 0

Concept: Applications of Differentiation in Business and Economics
Is there an error in this question or solution?