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Rate of Change, Marginal Cost & Revenue · Question 54 of 79

Question 54

MediumOriginal question

For R(x)=120x−3x2R(x) = 120x - 3x^{2} rupees, at what level of sales is the marginal revenue zero?

Options for question 54

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. MR=120−6xMR = 120 - 6x.

  2. 120−6x=0120 - 6x = 0 gives x=20x = 20 units; there total revenue is at its largest.

Worth noting

40 units is where total revenue itself is zero, 3x(40−x)=03x(40 - x) = 0.

Concept
Where marginal revenue is zero
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.