The cost function is C(x)= 3x+2 The revenue function is R(X)= 7x-x² x is the number of units produced in thousands and R and C are measured in millions of dollars Cost= Revenue= Thank you.

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- November 25th 2008, 01:21 PMbeachbunny619Marginal revenue and the marginal cost
The cost function is C(x)= 3x+2 The revenue function is R(X)= 7x-x² x is the number of units produced in thousands and R and C are measured in millions of dollars Cost= Revenue= Thank you.

- November 28th 2008, 06:22 PMSteve_JMarginal revenue and the marginal cost
I'm not exactly sure of the question you're asking, but I'll assume it's "where does the marginal revenue equal the marginal cost?"

The marginal revenue and marginal cost functions are the derivatives of the total revenue and total cost functions. So

MC = 3

MR = 7-2X

And X is solved by setting 3 = 7-2X, since you want to produce where the MC = MR. In this case, that works out to X=2, which, if I understand your note below, implies you would produce 2,000 units.

- Steve J