Each unit sells at $p = 40 - x$ rupees when $x$ units are sold. At $x = 10$ , how do the price and the marginal revenue compare?

They are equal, ₹30Correct answerYour answerThe marginal revenue, ₹30, is more than the price, ₹20Correct answerYour answerThe price, ₹30, is more than the marginal revenue, ₹10Correct answerYour answerThe price, ₹30, is more than the marginal revenue, ₹20Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Price at 10 units: $40 - 10 = 30$ . $R(x) = 40x - x^{2}$ , so $MR = 40 - 2x = 20$ .
To sell one more unit the price falls for every unit, so the extra revenue is less than the price.

Concept: Marginal revenue and price
Typical timeTypical: 90 s
Your timeYours: —

The rule this testsMarginal revenue

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

Each unit sells at p=40−xp = 40 - xp=40−x rupees when xxx units are sold. At x=10x = 10x=10, how do the price and the marginal revenue compare?

Explanation

Each unit sells at $p = 40 - x$ rupees when $x$ units are sold. At $x = 10$ , how do the price and the marginal revenue compare?