Answer:
(a) The daily total revenue realized from the sale of 210 units of the toaster oven is $6,195.
(b) The additional revenue realized when the production (and sales) level is increased from 210 to 310 units is $1,400.
Step-by-step explanation:
The marginal revenue gives the actual revenue realized from the sale of an additional unit of the commodity given that sales are already at a certain level. The derivative <em>R'</em> of the function <em>R</em> measures the rate of change of the revenue function.
We know that the daily marginal revenue function is given by
(a) To find the the daily total revenue you must:
- Integrate the daily marginal revenue function,
,
where C is a constant.
- Find the value of C, using the fact that if you sell 0 units your daily revenue is $0.
The daily total revenue realized from the sale of 210 units of the toaster oven is
x = 210 units
(b) To find the additional revenue realized when the production (and sales) level is increased from 210 to 310 units you must:
- Find the daily total revenue realized from the sale of 310 units
The additional revenue realized when the production (and sales) level is increased from 210 to 310 units is