Additional Revenue F959Dd
1. **State the problem:** We are given the marginal revenue function $$MR(x) = 4x^3 - x^2 + 3x^2 - 4$$ (in hundreds of dollars) for selling $$x$$ hand-built bicycles. We need to find the additional revenue earned when production increases from 3 to 7 bicycles.
2. **Understand the concept:** Marginal revenue $$MR(x)$$ represents the rate of change of total revenue $$R(x)$$ with respect to the number of bicycles $$x$$. To find the additional revenue when production increases from $$x=3$$ to $$x=7$$, we calculate the definite integral of $$MR(x)$$ from 3 to 7:
$$\text{Additional Revenue} = \int_3^7 MR(x) \, dx$$
3. **Simplify the marginal revenue function:**
$$MR(x) = 4x^3 - x^2 + 3x^2 - 4 = 4x^3 + 2x^2 - 4$$
4. **Integrate $$MR(x)$$:**
$$\int MR(x) \, dx = \int (4x^3 + 2x^2 - 4) \, dx = \int 4x^3 \, dx + \int 2x^2 \, dx - \int 4 \, dx$$
Calculate each integral:
$$\int 4x^3 \, dx = 4 \cdot \frac{x^4}{4} = x^4$$
$$\int 2x^2 \, dx = 2 \cdot \frac{x^3}{3} = \frac{2}{3}x^3$$
$$\int 4 \, dx = 4x$$
So,
$$R(x) = x^4 + \frac{2}{3}x^3 - 4x + C$$
5. **Calculate the additional revenue from 3 to 7:**
$$\int_3^7 MR(x) \, dx = R(7) - R(3)$$
Calculate $$R(7)$$:
$$7^4 + \frac{2}{3} \cdot 7^3 - 4 \cdot 7 = 2401 + \frac{2}{3} \cdot 343 - 28 = 2401 + \frac{686}{3} - 28$$
Calculate $$R(3)$$:
$$3^4 + \frac{2}{3} \cdot 3^3 - 4 \cdot 3 = 81 + \frac{2}{3} \cdot 27 - 12 = 81 + 18 - 12 = 87$$
Now,
$$R(7) = 2401 - 28 + \frac{686}{3} = 2373 + \frac{686}{3} = \frac{2373 \cdot 3}{3} + \frac{686}{3} = \frac{7119 + 686}{3} = \frac{7805}{3}$$
So,
$$\text{Additional Revenue} = R(7) - R(3) = \frac{7805}{3} - 87 = \frac{7805}{3} - \frac{261}{3} = \frac{7544}{3} \approx 2514.67$$
6. **Interpret the result:** The additional revenue earned when production increases from 3 to 7 bicycles is approximately 2514.67 hundreds of dollars, or 251,467 dollars.