Purchase Solution

Find the Marginal Revenue and Marginal Cost

Not what you're looking for?

Ask Custom Question

C(x)=5x+240 and P(x)=.3x+500
1. R(x)
2. the marginal revenue and marginal cost
3. an equation for x where marginal revenue and cost are equal

Purchase this Solution

Solution Summary

Detailed steps on Manipulating Cost, Profit and Revenue Equations to find the Marginal Revenue and Marginal Cost as well as an overview of the key terms and their meaning.

Solution Preview


1. To calculate revenue, R(x) it is good to remember the relationship between the Profit, Revenue and Cost functions:
P(x) = R(x) - C(x)
That is, profit P(x) is what is left over after subtracting cost from revenue, which makes sense. This equation can be rewritten to solve for any one of the three, given the other two, in this case:
P(x) + C(x) = R(x)
(.3x+500) + (5x+240) = R(x)
5.3x+740= R(x)

2. The marginal revenue and marginal cost, ...

Purchase this Solution

Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.