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

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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) About Me  (Show Source):
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By definition, the marginal revenue is



For small values of DELTA%2Ax, and in particular, if DELTA%2Ax+=+1, then

R'(x) ≈ %28R%28x%2BDELTA%2Ax%29+-+R%28x%29%29%2F%28DELTA%2Ax%29+=+R%28x%2B1%29-R%28x%29.

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).