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CA Foundation · Quantitative Aptitude · Differential and Integral Calculus

The marginal revenue of a firm is MR = 100 − 4x, where x is the number of units sold, and revenue is zero when nothing is sold. The total revenue function is:

The total revenue function is R = 100x − 2x². Integrating marginal revenue term by term gives 100x − 2x² plus a constant, and zero revenue at zero sales makes the constant zero.

  1. AR = 100x − 4x²
  2. BR = 100x − 2x²Correct
  3. CR = 100 − 2x²
  4. DR = 100x − 2x² + 100

Explanation

R = ∫(100 − 4x) dx = 100x − 2x² + k. Since R(0) = 0, k = 0. So R = 100x − 2x². The option 100x − 4x² forgets to divide by the new power 2.

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