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CA Foundation · Quantitative Aptitude · Differential and Integral Calculus

A company's demand function is p = 200 − 4x, where p is the price in ₹ per unit and x is the quantity sold. The marginal revenue when x = 10 is:

Revenue is R = 200x − 4x², so marginal revenue is 200 − 8x. At 10 units this equals 200 − 80 = ₹120. The figure ₹160 is the price, which is average revenue and not marginal revenue.

  1. A₹120Correct
  2. B₹160
  3. C₹40
  4. D₹200

Explanation

Revenue R = px = 200x − 4x². MR = dR/dx = 200 − 8x. At x = 10, MR = 200 − 80 = ₹120. The price at x = 10 is ₹160, which is average revenue, not marginal revenue.

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