The money to be spent for the welfare of the employees of a firm is proportional to the rate of change of its total revenue (Marginal Revenue). If the total revenue ( in rupees) received from the sale of x units of a product is given by
R(x) = 3 + 36 x + 5, find the marginal revenue, when x = 5, and write which value does the question indicate.
Matching exercise
Match the items on the right to the items on the left.
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M(x) proportional to Money spent on the welfare of employees.
Thus, M(x) = k (Money spent on the welfare of employees)
M(x) = 6 x + 36
At x = 5, M(x) = 66
Now at x = 6, M(x) = 72
Thus Marginal Revenue for x = 5 is 66
And when x increased from x = 5 to x = 6, Marginal revenue also increases and thus the money spent on the welfare of employees increases.