MATHEMATICS · Subjective · AP · Calculus AB · Contextual Applications of Differentiation · Contextual Applications of Differentiation
Problem
A product’s demand relationship is p(q)=120−0.5q, where p is the price (in dollars) received per unit when q units are sold. After a per-unit tax of 10 dollars is imposed, the firm’s revenue becomes (p(q)−10)q. Calculate the marginal revenue at a sales level of q=80 units under the tax.