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A company uses a demand function , where and . The Marginal Revenue decreases with the increase of…

Mathematics20251 markAssertion-reason

Assertion: A company uses a demand function $p = \frac{a}{x+b} - c$, where $a, b, c \in \mathbb{R}$ and $x = \text{number of units}$. The Marginal Revenue decreases with the increase of $x$.

Reason: $\frac{d}{dx}(MR) < 0$, where $0 < a < b$.

Assertion (A): A company uses a demand function $p = \frac{a}{x+b} - c$, where $a, b, c \in \mathbb{R}$ and $x = \text{number of units}$. The Marginal Revenue decreases with the increase of $x$. Reason (R): $\frac{d}{dx}(MR) < 0$, where $0 < a < b$.
  • (a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
  • (b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  • (c)Assertion (A) is true, but Reason (R) is false.
  • (d)Assertion (A) is false, but Reason (R) is true.

Answer

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Application of Calculus

From ISC 2025 Practice Mathematics, question 40.