The ebook Elementary Calculus is based on material originally written by H.J. Keisler. For more information please read the copyright pages.

Home Continuous Functions Related Rates Examples Example 5
 
del.icio.us Reddit Facebook StumbleUpon MySpace Twitter Search the VIAS Library  |  Index

Example 5

Suppose the demand for a product is equal to the inverse of the square of the price. Find the marginal revenue when the price is $10 per unit.

Step 1

p = price,

x = demand,

R = revenue.

Step 2

x = 1/p2, R = px.

Step 3

03_continuous_functions-33.gif

so by the Inverse Function Rule,

03_continuous_functions-34.gif

Substituting,

03_continuous_functions-35.gif

Step 4

We are given p = $10. Therefore the marginal revenue is dR/dx = $5.

An additional unit sold would bring in an additional revenue of $5.
Home Continuous Functions Related Rates Examples Example 5

Last Update: 2006-11-15