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Question:

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 sales of x units of a product is given by R(x) = 3x² + 36x + 5, find the marginal revenue when x = 5, and write which value does the question indicate.

Solution:

If the Total Revenue is given by f(x), the Marginal Revenue is the rate of change of total revenue and is nothing but the first order derivative of the function df(x)/dx
Total revenue = R(x) = 3x² + 36x + 5
Differentiating the equation R(x), we get
dR(x)/dx = 6x + 36
If x = 5, Marginal revenue = 6(5) + 36 = 66.
Therefore, the Marginal revenue = 66.
The concern over the welfare of the employees by the employer.