How to find the marginal revenue function?
Understand the Problem
The question is asking how to derive the marginal revenue function, which typically involves understanding the relationship between total revenue and the quantity of goods sold. Marginal revenue is calculated as the derivative of the total revenue function with respect to quantity.
Answer
The derivative of the total revenue function with respect to quantity, R'(x).
The final answer is the derivative of the total revenue function with respect to quantity, R'(x)
Answer for screen readers
The final answer is the derivative of the total revenue function with respect to quantity, R'(x)
More Information
Marginal revenue is crucial for companies to understand how changes in output affect their total revenue, thereby aiding in profit maximization.
Tips
A common mistake is to confuse marginal revenue with average revenue. Marginal revenue is the derivative of the total revenue function, not the total revenue divided by quantity.
Sources
- How to Determine Marginal Cost, Marginal Revenue, and Marginal Profit in Economics - dummies.com
- Learn How to Calculate Marginal Revenue - corporatefinanceinstitute.com
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