EduFarming
Your list · 0हिं

Type at least two letters. Press Esc to close.

↑↓ navigate↵ openTAB cycle filter

Rate of Change, Marginal Cost & Revenue · Question 60 of 79

How many units a week bring the firm the most revenue?

Question 60

MediumOriginal question

A firm finds that to sell xx units a week it must set the price at p=120−2xp = 120 - 2x rupees a unit.

How many units a week bring the firm the most revenue?

Options for question 60

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. Revenue is greatest where MR=120−4x=0MR = 120 - 4x = 0.

  2. x=30x = 30, and R′′(x)=−4<0R''(x) = -4 < 0.

Worth noting

60 units is where the price falls to zero, and the revenue with it.

Concept
Revenue is greatest where MR = 0
Typical time
120 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.

Practise this chapterAll 79 questions in Rate of Change, Marginal Cost & RevenueRevise the notes for Rate of Change, Marginal Cost & Revenue