Question #139864
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?
Expert's answer
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
