Calculate the average rate of change of r

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Reference no: EM131327952

The income that a company receives from selling an item is called the revenue. Production decisions are based, in part, on how revenue changes if the quantity sold changes; that is, on the rate of change of revenue with respect to quantity sold. Suppose a company's revenue, in dollars, is given by R(q) = 100q - 10q², where q is the quantity sold in kilograms.

(a) Calculate the average rate of change of R with respect to q over the intervals 1 ≤ q ≤ 2 and 2 ≤ q ≤ 3.

(b) By choosing small values for h, estimate the instantaneous rate of change of revenue with respect to change in quantity at q = 2 kilograms.

Reference no: EM131327952

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