CA Foundation P3 · Chapter 8 · Question 9 of 9
The marginal revenue function of a firm is MR = 50 − 4x. The corresponding demand (average revenue) function is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) p = 50 − 2x
Explanation
Total revenue R = ∫(50 − 4x) dx = 50x − 2x² + C. Since revenue is zero when nothing is sold, C = 0. Demand price p = R/x = 50 − 2x. 50x − 2x² is total revenue, not the demand function.
More Basic Applications of Differential and Integral Calculus in Business and Economics MCQs
- Q2The derivative of x²eˣ with respect to x is:
- Q3The total cost function of a firm is C = 0.5x² + 20x + 400 (in ₹). The marginal cost when x = 30 units is:
- Q4The derivative of y = log(3x² + 1) with respect to x is:
- Q5The profit function of a firm is P = −2x² + 120x − 500 (in ₹). The maximum profit is:
- Q6∫(6x² − 4x + 5) dx is equal to: