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Compound Interest
A = P(1+r/m)^mt
Continuous compound interest
A = Pe^rt
R(x) =
X times p(x)
P(X) =
R(x) - C(x)
Marginal revenue
R’(x)
average revenue
R(X)/(x)
Marginal revenue interpretation
At the production level _____, revenue function is increasing (or decreasing) at a rate of $___ per unit.
Break even point
R(x) = C(x)