Leticia manages R(q) = 240q 0.05q 2 a company whose total weekly revenue is dollars when

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Leticia manages R(q) = 240q − 0.05q2 a company whose total weekly revenue is dollars when q units are produced and sold. Currently, the company produces and sells 80 units a week.

a. Using marginal analysis, Leticia estimates the additional revenue that will be generated by the production and sale of the 81st unit. What does she discover? Based on this result, should she recommend increasing the level of production?

b. To check her results, Leticia uses the revenue function to compute the actual revenue generated by the production and sale of the 81st unit. How accurate was her result found by marginal analysis?

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Related Book For  answer-question

Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

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