The total revenue received from the sale of x units of a product is given by $R(x)=36x^2-x^2+10.$ Arrange the following values in ascending order.
A. marginal revenue at $X=5$
B. average revenue at $X=5$
C. marginal revenue at $X=10$
D. average revenue at $X=10$
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → B < A < D < C
Revenue, $R(x)=36x^2-x^2+10=35x^2+10$
$MR(x)=\frac{dR(x)}{dx}=70x$
$⇒MR(5)=70×5=350$ → (A)
$MR(10)=70×10=700$ → (C)
Now,
Average Revenue, $AR(x)=\frac{R(x)}{x}=35x+\frac{10}{x}$
$⇒AR(5)=35×5+\frac{10}{5}=177$ → (B)
$AR(10)=35×10+\frac{10}{10}=351$ → (D)