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Homework Help: Average revenue calc help

  1. Oct 15, 2005 #1
    1. Assume that total revenue from the sale of x television sets is given by
    R(x)=1000(1-(x/5))^2
    a)find the marginal revenue when 400, 500, 600 sets are sold
    i found that R'(x)=-4 +(x/125)
    is it correct?
    therefore R'(400)=$-0.8 R'(500)=$0 R'(600)=$0.8
    ??

    b)find the average revenue form the sales of x sets
    ave R(x)=R(x)/x
    would it equal (1000/x)(1-(x/500))^2 ??
    could it be simplify further?

    c) Find the marginal average revenue.
    ave R'(x)=R'(x)/x
    =(-4/x)+(1/125)

    am i correct on all of these??

    2. The cost is dollars of manufacturing x items is given by
    C=2000x+3500
    demand equation is x=āˆš(15000-1.5p)
    in terms of the demand x,
    a) find an expression for the revenue R

    does that mean R(x)=px
    R(x)=pāˆš(15000-1.5p)
    or u solve for p instead?
     
  2. jcsd
  3. Oct 15, 2005 #2
    Nope, applying the chain rule you get (-1/5)*(2)*1000(1-(x/5)) which, upon simplification yields R'(x)=-400+80x
    Kevin
     
  4. Oct 15, 2005 #3
    o..my mistake...the question is actually
    R(x)=1000(1-(x/500))^2
    then is my answer right now?
     
  5. Oct 16, 2005 #4
    yep, at least as far as R'(x) is concerned, I don't know any economics so I won't say anything else about the rest of the problem.
     
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