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CA Foundation · Quantitative Aptitude · Differential and Integral Calculus

The total revenue function of a firm is R(x) = 60x − 0.2x² (in ₹). The average revenue at the output where marginal revenue is zero is:

Marginal revenue is 60 − 0.4x, which is zero at x = 150. Average revenue is R/x = 60 − 0.2x, so at 150 units it equals 60 − 30 = ₹30.

  1. A₹30Correct
  2. B₹60
  3. C₹15
  4. D₹45

Explanation

MR = 60 − 0.4x = 0 gives x = 150. Average revenue = R/x = 60 − 0.2x = 60 − 30 = ₹30. The value ₹60 is the intercept of the average revenue, valid only at x = 0.

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