The demand function for a certain product is represented by the equation: $p = 20 + 5x-3x^2$, where $x$ is the number of units demanded and $p$ is the price per unit (in Rs.),then the marginal revenue when 2 units are sold, is: |
Rs.8 Rs.4 Rs.6 Rs.2 |
Rs.4 |
The correct answer is Option (2) → Rs.4 ** Demand function: $p=20+5x-3x^{2}$ Total revenue: $R=xp=x(20+5x-3x^{2})=20x+5x^{2}-3x^{3}$ Marginal revenue: $\frac{dR}{dx}=20+10x-9x^{2}$ At $x=2$: $MR=20+10(2)-9(2^{2})$ $MR=20+20-36$ $MR=4$ The marginal revenue when 2 units are sold is $4$. |