If the revenue R and quantity sold Q are related by
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If the revenue R and quantity sold Q are related by

3. If the revenue R and quantity sold Q are related by R=32Q - 4Q2.

a. State the marginal revenue function.

b. What is the marginal revenue when Q=3

c. Find the maximum of the revenue function.

d. Justify that this in fact gives a maximum revenue.

e. Considering the behaviour of the revenue function and your answers of (c) and (d), discuss the strategy that the company should adopt in producing and selling this product.

Hint
Statistics Revenue function is defined as the product of the price per unit times the number of units sold; R = P × Q. Where R denotes revenue and Q denotes the number of units sold. To get the revenue function, multiply the price function by the output level....
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