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Marginal Revenue The management of Ditton Industries has determined that the daily marginal revenue function associated...

Marginal Revenue

The management of Ditton Industries has determined that the daily marginal revenue function associated with selling x units of their deluxe toaster ovens is given by the following, where R'(x) is measured in dollars/unit.

R'(x) = −0.1x + 40

(a) Find the daily total revenue realized from the sale of 230 units of the toaster oven.

(b) Find the additional revenue realized when the production (and sales) level is increased from 230 to 330 units.

Solutions

Expert Solution

a) The daily total revenue realized from the sale of 230 units of the toaster oven is $6555.

B) The additional revenue realized when the production (and sales) level is increased from 230 to 330 units is $1200. ?

milcah answered 2 years ago
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