Cost x + 5, Revenue 12x - 2x^2: find marginal rev. eqn.

[lilcherbear]

If I am given a cost function of C(x) = x+5 and the revenue function is R(x) = 12x-2x^2 how can I determine what the marginal revenue equation will be? Thank you

Cherie

 

[Deleted member 4993]

Re: Cost and Revenue Functions

If I am given a cost function of C(x) = x+5 and the revenue function is R(x) = 12x-2x^2 how can I determine what the marginal revenue equation will be? Thank you

Cherie

MR(x) = P(x) + x*P'(x).

 

[lilcherbear]

Re: Cost and Revenue Functions

Would the marginal revenue based on the given information in my first reply be R'(x)=14-4x?

Also, the marginal cost, would that be C'(x)=1?

I am not sure if I did it right or not. Thank you
Cherie

 

[lilcherbear]

Re: Cost and Revenue Functions

In addition, how would I go about determining the break even points [the #'x x for which R(x)=C(x)]? Thank you.

Cherie

 

[skeeter]

Re: Cost and Revenue Functions

Would the marginal revenue based on the given information in my first reply be R'(x)=14-4x?

R'(x) = 12 - 4x

Also, the marginal cost, would that be C'(x)=1?
yes



In addition, how would I go about determining the break even points [the #'x x for which R(x)=C(x)]?

12x - 2x[sup:2g2ynyr5]2[/sup:2g2ynyr5] = x + 5
solve the quadratic for x

Cherie