Answer:
Explanation:
If, in a monopoly market, the demand for a product is
p = 140 − 0.50x
and the revenue function is
R = px,
where x is the number of units sold, what price will maximize revenue?
The revenue function R=x(140-0.50x)
=140x-0.50x ^ 2
In a monopoly revenue is maximized when marginal revenue is zero.
DR/dx=0= 140x-0.50x ^ 2
x=140
When x=140 the demand =140-(140*0.5) is 70.
The revenue will be 140*70= $9,800.
