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Rate of Change, Marginal Cost & Revenue · Question 72 of 79

Question 72

MediumOriginal question

For xx units, revenue is R(x)=100x−2x2R(x) = 100x - 2x^{2} and cost is C(x)=x2+10x+50C(x) = x^{2} + 10x + 50 rupees. At what output does marginal revenue equal marginal cost?

Options for question 72

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. MR=100−4xMR = 100 - 4x and MC=2x+10MC = 2x + 10.

  2. 100−4x=2x+10100 - 4x = 2x + 10 gives x=15x = 15: the output of greatest profit.

Worth noting

25 units sets MR=0MR = 0, which maximises revenue, not profit.

Concept
Conditions for the best output
Typical time
90 s
Your time
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The rule this testsMaximising profit and 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.