The demand function for T.V. sets is $p = 20000 - 100x$ (rupees). Determine the total revenue and average revenue by selling 20 sets.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Total Revenue = ₹360000, Average Revenue = ₹18000
Price $p = (20000-100x)$ per T.V. set
∴ Total revenue by selling x sets = $px = ₹(20000 - 100x) x$
∴ Total revenue by selling 20 sets = $₹(20000-100 × 20) × 20$
$= ₹(18000 × 20) = ₹360000$
Average revenue by selling 20 sets = $₹\frac{360000}{20}=₹1800$