Question

Demand Function p=40+12D-3D2 where p= price and D=Demand Find marginal revenue at

D=5​

Answer 1

Answer:

P = 70..

Step-by-step explanation:

P=40+12D-3D2

= 40+60-30

= 70

Answer 2

Answer:25

Step-by-step explanation:

Since it is given that $p=40+12D-3D^{2}$......(1)

We have to find the value at D=5

Hence put the value of D in (1)

We get the value as,

$p=40+12(5)-3(5^{2} )$

on solving we get the value of p as 25

• Marginal revenue refers to the incremental change in profit resulting from the sale of one additional unit.
• Marginal revenue analysis helps a company identify the revenue generated from each additional unit sold.
• Marginal revenue is often shown graphically as a downward-sloping line that represents how much a company typically has to lower its prices to encourage more sales.
• A company seeking to maximize its profits will produce up to the point where marginal cost equals marginal revenue.
• When marginal revenue falls below marginal cost, firms typically perform a cost-benefit analysis and stop production because it may cost more to sell a unit than what the company receives as revenue.

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