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revenue function
[revenue function|revenue function] The revenue function is a mathematical representation of total revenue, where its derivative corresponds to the marginal revenue.
Definition
revenue function The revenue function is a mathematical representation of total revenue, where its derivative corresponds to the marginal revenue.
Mechanism
revenue function Evaluating the revenue function at p = 5 and p = 17, wecan conclude that R(5) = ~1.04(5)? + 26(5) = 104, sorevenue = $104,000; R(17) = -1.04(17)? + 26(17) = 141.44, so revenue = $141,440. | Find the revenue function R(x).
Effects
revenue function results from substituting h=1 into the approximation formula, yielding MC(x) = C' (x) & C(x+1)- C(x).