Pierce Manufacturing determines that the daily revenue, in dollars, from the sale of
a) What is the current daily revenue?
b) How much would revenue increase if 94 lawn chairs were sold each day?
c) What is the marginal revenue when 90 lawn chairs are sold daily?
d) Use the answer from part (c) to estimate
Step 1 :Let's denote the number of lawn chairs sold as
Step 2 :For part a), we substitute
Step 3 :For part b), we calculate the revenue when
Step 4 :For part c), we find the derivative of the revenue function,
Step 5 :For part d), we use the marginal revenue to estimate the revenue for selling 91, 92, and 93 lawn chairs. The marginal revenue gives the approximate increase in revenue for each additional lawn chair sold, so we add the marginal revenue to the current revenue to estimate the revenue for selling one more lawn chair:
Step 6 :