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Rate of Change, Marginal Cost & Revenue · Question 53 of 79

Question 53

MediumOriginal question

The price at which xx units can be sold is p=80−4xp = 80 - 4x rupees each. What is the marginal revenue when 5 units are sold?

Options for question 53

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. R(x)=x(80−4x)=80x−4x2R(x) = x(80 - 4x) = 80x - 4x^{2}, so MR=80−8xMR = 80 - 8x.

  2. At x=5x = 5: 80−40=4080 - 40 = 40 rupees.

Worth noting

₹60 is the price at x=5x = 5; selling one more unit also lowers the price of the other five.

Concept
Marginal revenue from a demand function
Typical time
90 s
Your time
—
The rule this testsMarginal revenue
Practise this chapter →

Ten questions from Rate of Change, Marginal Cost & Revenue, at your own pace.

Practise this chapter →

Ten questions from Rate of Change, Marginal Cost & Revenue, at your own pace.