Question

The demand function of a monopolist is given by p=1500-2x -x2.find the marginal function and the marginal revenue function

Answer 1

Answer:

We have, p=1500−2x−x

2

⇒ Revenue Function R=p×x

∴ R=1500x−2x

2

−x

3

.

⇒ Marginal revenue =

dx

d

R

⇒ Marginal revenue =

dx

d

(1500x−2x

2

−x

3

)

⇒ Marginal revenue = 1500−4x−3x

2

⇒ Now, substitute x=10.

⇒ Marginal revenue = 1500−2(100)−3(100)

2

=1160

∴ Marginal revenue is 1160.