The total revenue received from the sale of x units of a product is given by
$R(x)=36x+3x^2+5.$
Then the difference between Marginal revenue and Average revenue when x= 5 is :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 14
The total revenue function,
$R(x)=36x+3x^2+5$
and,
Average Revenue (AR),
$AR=\frac{R(x)}{x}=\frac{36x+3x^2+5}{x}$
$AR=36+3x+\frac{5}{x}$
$⇒AR(5)=36+3×5+\frac{5}{5}=52$
Now,
Marginal Revenue, $MR(x)=\frac{d}{dx}(36x+3x^2+5)$
$=36+6x$
$⇒MR(5)=36+6×5=66$
$∴MR-AR=66-52=14$