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If a revenue function is given by R(x)=2027x1013x2675x3R(x) = 2027x - 1013x^2 - 675x^3, then the marginal revenue function (MR) is:

Solution

Correct Option: 3

Marginal Revenue (MR) is the derivative of the Revenue function.

Given: R(x)=2027x1013x2675x3R(x) = 2027x - 1013x^2 - 675x^3

Find: MR=dRdxMR = \frac{dR}{dx}


Using the power rule, where the derivative of axnax^n is n×axn1n \times ax^{n-1}:

For the term 2027x2027x:

Power of xx is 11

Derivative =1×2027x11= 1 \times 2027x^{1-1}

=2027x0= 2027x^0

=2027= 2027


For the term 1013x2-1013x^2:

Power of xx is 22

Derivative =2×(1013)x21= 2 \times (-1013)x^{2-1}

=2026x= -2026x


For the term 675x3-675x^3:

Power of xx is 33

Derivative =3×(675)x31= 3 \times (-675)x^{3-1}

=2025x2= -2025x^2


Combining all terms:

MR=20272026x2025x2MR = 2027 - 2026x - 2025x^2

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