Answer:
a) $825
b) $205.10
c) $47.5
d) R(51) = 872.5, R(52) = 920, R(53) = 967.5
Step-by-step explanation:
We are given the following information in the question:
where x is the number of lawn chairs.
a) Current daily revenue
Thus, $825 is the current daily revenue when Pierce sells 50 lawn chairs daily.
b) Revenue increase if 54 lawn chairs were sold each day
Thus, revenue increase $205.10 if 54 lawn chairs were sold each day.
c) Marginal revenue
Thus, $47.5 is the marginal revenue when 50 lawn chairs are sold daily.
d) R(51), R(52), and R(53)