Total revenue is in dollars and x is the number of units. Suppose that the total revenue function for a commodity is Find the marginal revenue at and tell what it predicts about the sale of the next unit. Round your answer to two decimal places.
A)13.80. The selling of the next unit increases revenue by $13.80.
B)12.60. The selling of the next unit increases revenue by $12.60.
C)-414.00. The selling of the next unit decreases revenue by $414.
D)-30.00. The selling of the next unit decreases revenue by $30.
E)-15.00. The selling of the next unit decreases revenue by $15.

Question

Total revenue is in dollars and x is the number of units. Suppose that the total revenue function for a commodity is  Find the marginal revenue at  and tell what it predicts about the sale of the next unit. Round your answer to two decimal places. ​
A)13.80. The selling of the next unit increases revenue by $13.80. 
B)12.60. The selling of the next unit increases revenue by $12.60. 
C)-414.00. The selling of the next unit decreases revenue by $414. 
D)-30.00. The selling of the next unit decreases revenue by $30. 
E)-15.00. The selling of the next unit decreases revenue by $15.

Quizplus · Accepted Answer

To find the marginal revenue at x=200, we need to find the derivative of the total revenue function with respect to x and then evaluate it at x=200.

dTR/dx = 87 - 0.04x

dTR/dx at x=200 = 87 - 0.04(200) = 79

So, the marginal revenue at x=200 is $79. This means that selling the next unit will increase revenue by $79.

The correct answer is B because it is the only option that matches the calculated marginal revenue.

Total Revenue Is in Dollars and X Is the Number