Question #271454

A manufacturer has

determined that m employees will produce a total of q units of

product per day, where

q = m(60 − m)

If the demand function is given by

p = −0.02q + 12

fifind the marginal-revenue product when m = 10.


1
Expert's answer
2021-11-26T12:18:03-0500

marginal revenue equation is the first derivative of the revenue function.

revenue function is given by F×QF \times Q


F=0.002q+12F=-0.002q +12

R=F×qR=F \times q

R=(0.002q+12)×qR=( -0.002q + 12) \times q

R=0.002q2+12qR=-0.002q^2+12q

But marginal revenue is given by the first derivative of the revenue function


MR=ΔRΔq0.002q2+12qMR=\frac {\Delta R}{\Delta q} 0.002q^2+12q


MR=0.004q+12MR=-0.004q+12

but qq is given by q=m(60m)q = m(60 − m)

when m=10m=10

q=10(6010)q=10(60-10)


q=600100q=600-100


q=500q=500


MR=(0.004×500)+12MR=(-0.004 \times 500)+12


MR=2+12MR=-2 +12


MR=10MR=10


MARGINAL REVENUE = 10units10units


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