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A monopolist's Demand function is x=70−P2x = 70 - \frac{P}{2}, the revenue at x=5x = 5 will be :

Solution

✅ Correct Option: 1

From x=70−P2x = 70 - \frac{P}{2}: P=2(70−x)=140−2xP = 2(70 - x) = 140 - 2x.

Revenue R=P⋅x=(140−2x)x=140x−2x2R = P \cdot x = (140 - 2x)x = 140x - 2x^2.

At x=5x = 5: R=140(5)−2(25)=700−50=650R = 140(5) - 2(25) = 700 - 50 = 650.

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