Total Revenue Calculation from Production and Sale of 40 Units

What is the total revenue from the production and sale of 40 units?

If the marginal revenue (in dollars per unit) for a month is given by MR =−0.4x+300, what is the total revenue from the production and sale of 40 units?

Answer:

The total revenue from the production and sale of 40 units is $11,360.

The marginal revenue (MR) function given is MR = -0.4x + 300, where x represents the number of units produced and sold. To find the total revenue from the production and sale of 40 units, we need to use the formula for total revenue (TR) which is the product of the quantity sold and the price per unit.

First, we need to find the price per unit by substituting x = 40 into the MR function:

MR = -0.4(40) + 300 = 284 dollars per unit.

Now, we can calculate the total revenue:

TR = price per unit × quantity sold = 284 × 40 = 11360 dollars.

In summary, the total revenue is calculated by multiplying the price per unit by the quantity sold. In this case, the MR function provides the price per unit, which is then multiplied by 40 units to find the total revenue.