Read the two statements and choose the correct option.
I. If every unit sells at the same fixed price $p$ , the marginal revenue is $p$ .
II. If the price is $p = a - bx$ , the marginal revenue $a - 2bx$ falls twice as fast as the price.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

I: $R = px$ , so $R'(x) = p$ . True.
II: $R = ax - bx^{2}$ , so $MR = a - 2bx$ , which falls by $2b$ per unit while the price falls by $b$ . True.

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

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

Read the two statements and choose the correct option.I. If every unit sells at the same fixed price ppp, the marginal revenue is ppp.II. If the price is p=a−bxp = a - bxp=a−bx, the marginal revenue a−2bxa - 2bxa−2bx falls twice as fast as the price.