If the demand function of a new product is $P(x)= 4000 -150x,$ then the marginal revenue when 10 units are sold is :
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 1000
Revenue is given as,
$R(x)=P(x)×x$
$=(4000-150x)×x$
$=4000x-150x^2$
Marginal Revenue, $MR=\frac{d}{dx}(4000x-150x^2)$
$=4000-300x$
$MR(10)=4000-300×10$
$=1000$