Thread: Revenue Function

I dont understand this question. Can you please tell me how to do the question, and help me with doing it?

The demand function for snack cakes at a large bakery is given by the function . The -units are given in thousands of cakes, and the price per snack cake, , is in dollars.

a) Find the revenue function for the cakes

b) Estimate the marginal revenue for . What is the marginal revenue for ?

Originally Posted by haddad287

I dont understand this question. Can you please tell me how to do the question, and help me with doing it?

The demand function for snack cakes at a large bakery is given by the function . The -units are given in thousands of cakes, and the price per snack cake, , is in dollars.

a) Find the revenue function for the cakes

b) Estimate the marginal revenue for . What is the marginal revenue for ?

The revenue function is R(x) = quantity * price = x * p(x).

Marginal Revenue refers to R'(x), the first derivative of Revenue.

Good luck!

What do you mean by "R(x) = quantity * price = x * p(x)." ???

Please explain that more

Sure:

revenue = price times quantity

Example:
You sell 20 cds at ten dollars each:

x = quantity = 20 cds
p(x) = $10
R(x) = revenue = x * p(x) = 20 * 10 = 200

Thank you, but for some reason, the answer is soppsoe to be

That is what it says in the Answers for that question

Originally Posted by haddad287

Thank you, but for some reason, the answer is soppsoe to be

That is what it says in the Answers for that question

That's the price function; the revenue function is product of the price function with quantity x, so if you throw in an x, you get revenue: