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The demand function for a certain product is represented by the equation: p=20+5x−3x2p = 20 + 5x - 3x^2, where xx is the number of units demanded and pp is the price per unit (in Rs.), then the marginal revenue when 2 units are sold is:

Solution

✅ Correct Option: 2

The demand function is given as p=20+5x−3x2p = 20 + 5x - 3x^2, where xx is the number of units demanded and pp is the price per unit.

Marginal Revenue is the additional revenue earned when selling one more unit.


Revenue is the product of price per unit and number of units:

R=p×xR = p \times x

R=x(20+5x−3x2)R = x(20 + 5x - 3x^2)

R=20x+5x2−3x3R = 20x + 5x^2 - 3x^3


Marginal Revenue is the derivative of Revenue with respect to xx:

MR=dRdxMR = \dfrac{dR}{dx}

MR=ddx(20x+5x2−3x3)MR = \dfrac{d}{dx}(20x + 5x^2 - 3x^3)

MR=20+10x−9x2MR = 20 + 10x - 9x^2


For x=2x = 2 units:

MR=20+10(2)−9(2)2MR = 20 + 10(2) - 9(2)^2

MR=20+20−9(4)MR = 20 + 20 - 9(4)

MR=40−36MR = 40 - 36

MR=4MR = 4

Therefore, the marginal revenue when 2 units are sold is Rs. 4.

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