+270 Let R(P) denote the total revenue generated when our company sells laptops for $P each. We spent a lot of money to run a market survey that determined the R(500) = $5,000,000 and R'(500) = $40,000. Estimate the total revenue generated if we sell each laptop for $502 using linearization. (This saves us the cost of running another expensive market survey).
+95 R(500)=5,000,000
R'(500)=40,000
R(502)=?
By linear approximation,
L(p)=R(500)+R'(500)(p-500)
L(502)=5,000,000+40,000(2)
= 5,080,000=R(502)
