Question: A linear revenue function is R = 80x. (Assume R is measured in dollars.) (a) What is the slope m? m= (b) What is
A linear revenue function is R = 80x. (Assume R is measured in dollars.) (a) What is the slope m? m= (b) What is the marginal revenue MR? MR = >> What does the marginal revenue mean? If the number of units sold is increased by this amount, the revenue increases by $1. Each additional unit sold decreases the revenue by this many dollars. If the number of units sold is increased by this amount, the revenue decreases by $1. Each additional unit sold yields this many dollars in revenue. (c) What is the revenue received from selling one more item if 50 are currently being sold? $ What is the revenue received from selling one more item if 100 are being sold? $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
