Question

Pierce Manufacturing determines that the daily​ revenue, in​ dollars, from the sale of x lawn chairs is ​R(x)equals0.007 x cubed plus 0.02 x squared plus 0.5 x. ​Currently, Pierce sells 50 lawn chairs daily.

​a) What is the current daily​ revenue?

​b) How much would revenue increase if 53 lawn chairs were sold each​ day?

​c) What is the marginal revenue when 50 lawn chairs are sold​ daily?

​d) Use the answer from part​ (c) to estimate ​R(51​), ​R(52​), and ​R(53​).

Bus Econ 2.b.5 Pierce Manufacturing determines that the daily revenue, in dollars, from the sale of x lawn chairs is R(x)=0.007xº+0.02X +0.5%. Currently, Pierce sells 50 lawn chairs daily. a) What is the current daily revenue? b) How much would revenue increase if 53 lawn chairs were sold each day? c) What is the marginal revenue when 50 lawn chairs are sold daily? d) Use the answer from part (c) to estimate R(51), R(52), and R(53). a) The current revenue is $

Answer 1

R(X) = 0.00743 +0.02 x2+ 0.5% (a) x=50 lawns R(50)= 0.007 (50) + 0.02 (50)2 +0:5450 =950 . (b) of x=53 R (53) = 0.007 (53)3 +0.02% 5327 0:5*53 = 1153 · 82 Increased by = 1153-32 - 950 = 174.82 (6) Marignal Revenue => RICX) R'(X)= 0·007 X 322 70.02 x2 x +0.5 R' (50) = 0.007 X 3X502 +0.02X2X50 +0:5 R (50)=55 ď R (51) = R 1501 + R' (507 X1 R (50) = 950 + 55 = 101555 1005 R(52) = R(50)+ R' (50)*2 = 950 + 55 X2 = 1060 R(53) = R150)+P! (50)X 3 z 95 0+ 55x3 = 1115