SOLUTION: For business applications, the derivative of a revenue function is called the marginal revenue function. If input is measured in number of units sold and revenue is measured in dol

Question 1186164: For business applications, the derivative of a revenue function is called the marginal revenue function. If input is measured in number of units sold and revenue is measured in dollars, explain in simple terms what the marginal revenue function measures. Also, give the units for the marginal revenue function. please show work and answer asap!
Answer by robertb(5830) (Show Source): You can put this solution on YOUR website!

By definition, the marginal revenue is

For small values of , and in particular, if , then

R'(x) ≈ .

This leads to the interpretation that the marginal revenue measures the approximate change in revenue corresponding to one additional unit sold.

The units for marginal revenue is in dollars per units sold ($/unit).

RELATED QUESTIONS
If the revenue function for selling q widgets is r(q) =q.(4187-5q) dollars, find the... (answered by MathLover1)

If the revenue function for selling q widgets is r(q) =q.(4187-5q) dollars, find the... (answered by amarjeeth123)

An ice cream shop sells 150 vanilla ice cream cakes per month at a price of $40 each. A... (answered by josgarithmetic)

94. Marginal revenue. A defense attorney charges her client $4,000 plus $120 per hour. (answered by elima)

Marginal Revenue: A defense attorney charges her client $4000 plus $120 per hour. The... (answered by Theo)

A defense attorney charges her client $4000 plus $120 per hour. The formula R=120n +... (answered by stanbon)

The revenue for a business, as a function of units produced, x, is shown below by R(x).... (answered by Boreal)

Demand for a product is modeled by the function p = D(x) = 6(- e ^ (0.1x))Where p is... (answered by ikleyn)