CMA Foundation · Fundamentals of Business Mathematics and Statistics · Calculus - Application in Business
The marginal revenue of a firm is MR = 50 - 4x rupees, where x is the number of units sold. Revenue is zero when nothing is sold. The revenue function is:
Integrating MR = 50 - 4x gives 50x - 2x² plus a constant. Because revenue is zero at zero sales, the constant is zero, so the revenue function is R = 50x - 2x².
- AR = 50x - 4x²
- BR = 50x - 2x²Correct
- CR = 50 - 2x²
- DR = 50x - 2x² + 50
Explanation
R = ∫(50 - 4x)dx = 50x - 2x² + c. Since R(0) = 0, c = 0. The option 50x - 4x² forgets to divide the coefficient by the new power 2.
Did you get it right without looking?
One question tells you little. A timed set on Calculus - Application in Business shows your real accuracy, how long you take and where you lose marks.
More Calculus - Application in Business questions
- A Kolkata firm has total cost C(x) = x³/3 − 4x² + 30x + 200 (in rupees) where x is output in units. At which output is the marginal cost min…
- If y = (3x + 2)^4, what is dy/dx at x = 0?
- For the demand function q = 500/p (p > 0), what is the point price elasticity of demand (in absolute value) at any price?
- A Jaipur firm has total cost C(x) = x² + 20x + 900 and sells each unit at a fixed price of ₹80. What is the break-even output (positive, non…
- A Chennai manufacturer faces the demand function p = 120 − 0.5x, where p is price in ₹ per unit and x is units sold. At what output is total…
- A company in Surat faces the demand function p = 100 − 0.5x, where p is price in rupees and x is units sold. What is the marginal revenue fu…