The revenue in thousands of dollars from producing x units o

The revenue (in thousands of dollars) from producing x units of an item is modeled by R(x) = 12x - 0. 005x2. Find the average rate of change in revenue as x changes from 1002 to 1008. Find the marginal revenue at x = 2200. The average rate of change in revenue is dollars per unit. (Do not round until the final answer. Then round to the nearest dollar as needed. ) The marginal revenue is dollars per unit. (Do not round until the final answer. Then round to the nearest dollar as needed. )

Solution

a) Average rate of change in revenue = R\'(x)/x = 12/x - 0.01 dollars per unit. b) Marginal revenue = R\'(x) = 12 - 0.01x = -10$