Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Calculus

Question:

A company is selling a certain commodity 'x'. The demand function for the commodity is linear. The company can sell 2000 units when the price is ₹8 per unit and it can sell 3000 units when the price is ₹4 per unit. The Marginal revenue at x = 5 is:

Options:

₹79.98

₹15.96

₹16.04

₹80.02

Correct Answer:

₹15.96

Explanation:

The correct answer is Option (2) → ₹15.96

Let demand function be $p=ax+b$.

Given points on demand curve: $(x,p)=(2000,8)$ and $(3000,4)$.

Slope:

$a=\frac{4-8}{3000-2000}=\frac{-4}{1000}=-\frac{1}{250}$

So $p=-\frac{x}{250}+b$.

Substitute $(2000,8)$:

$8=-\frac{2000}{250}+b$

$8=-8+b$

$b=16$

Thus $p=16-\frac{x}{250}$.

Revenue $R=xp=x\left(16-\frac{x}{250}\right)=16x-\frac{x^{2}}{250}$.

Marginal revenue:

$MR=\frac{dR}{dx}=16-\frac{2x}{250}$

$=16-\frac{x}{125}$

At $x=5$:

$MR=16-\frac{5}{125}=16-\frac{1}{25}=\frac{399}{25}$

final answer: $\frac{399}{25}$