Answer to Question #139864 in Financial Math for jess

Question

A publisher sells 150 books a month. The marginal revenue is given by 704-0.02(Q^2+Q). What would be the change in revenue be if 2 more books were sold?

Answer 1

The marginal revenue is given by 704-0.02(Q^2+Q).

A publisher sells 150 books a month.

Adding two books will make the books sold to be 152.

704-0.02(Q^2+Q) is the marginal revenue.

To get the change in marginal revenue will be given by replacing Q by 2

Thus,

704-0.02(2^2+2)

704-0.02(6)

704-0.12

=703.88

Therefore,

The change in revenue will be 703.88