The demand function for a certain product is represented by the equation: , where is the number of units demanded and is the price per unit (in Rs.), then the marginal revenue when 2 units are sold is:
The demand function for a certain product is represented by the equation: , where is the number of units demanded and 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 , where is the number of units demanded and 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:
Marginal Revenue is the derivative of Revenue with respect to :
For units:
Therefore, the marginal revenue when 2 units are sold is Rs. 4.
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