Calculate the revenue and marginal revenue

Reference no: EM131010255

Assume that the demand function for tuna in a small coastal town is given by: p = 60 / q^0.5, where p is the price (in dollars) per pound of tuna, and q is the number of pounds of tuna that can be sold at the price p in one month.

(a) Calculate the price that the town's fishery should charge for tuna in order to produce a demand of 400 pounds of tuna per month.

(b) Calculate the monthly revenue R (in dollars) as a function of the number of pounds of tuna q.

(c) Calculate the revenue and marginal revenue (derivative of the revenue with respect to q) at a demand level of 400 pounds per month.

(d) At a demand level of 400 pounds per month, the revenue is $_______ and increasing at a rate of $______ per additional pound of tuna.

Reference no: EM131010255

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