Question
A pharmaceutical corporation has two locations that produce the same over-the-counter medicine. If x1 and x2 are the numbers of units produced at location 1 and location 2, respectively, then the total revenue for the product is given by
R = 700x1 + 700x2 − 2x1^2 − 4x1x2 − 2x2^2.
When x1 = 4 and x2 = 12, find the following.
(a) the marginal revenue for location 1,
∂R/∂x1
(b) the marginal revenue for location 2,
∂R/∂x2
R = 700x1 + 700x2 − 2x1^2 − 4x1x2 − 2x2^2.
When x1 = 4 and x2 = 12, find the following.
(a) the marginal revenue for location 1,
∂R/∂x1
(b) the marginal revenue for location 2,
∂R/∂x2
Answers
Steve
∂R/∂x1 = 700 - 4x1 - 4x2
∂R/∂x2 = 700 - 4x1 - 4x2
∂R/∂x2 = 700 - 4x1 - 4x2