Let R(x) denote the revenue (in thousands of dollars) generated from the product
ID: 2876560 • Letter: L
Question
Let R(x) denote the revenue (in thousands of dollars) generated from the production of x units of computer chips per day, where each unit consists of 100 chips.
(a) Represent the following statement by equations involving R or R' : When 1800 chips are produced per day, the revenue is $29,000 and the marginal revenue is $.75 per chip. My answer: R(18)=29, R'(18)=.075
Need help with this question PLEASE: (b) If the marginal cost of producing 1800 chips is $1.3 per chip, what is the marginal profit at this production level?
Explanation / Answer
a)1800 chips =18 units
revenue is $29,000
=>R(18)=29
marginal revenue is $0.75 per chip
marginal revenue is 0.75 *100 =75 dollars per unit
R'(18)=75
(b) marginal cost of producing 1800 chips is $1.3 per chip,
marginal profit =marginal revenue -marginal cost
marginal profit =0.75-1.3
marginal profit =-0.55 dollars per chip
marginal profit =-55 dollars per unit
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.