The revenue functions of the calculator companies is the difference between their cost and profit functions
The price of each calculator when the revenues of AN Calculators and MN Calculators are the same is $2.5
The revenue functions are given as:
RAN (x) = (25 + 10x) (300 - 36x)
RMN (x) = (100+ 20x) (100 - 12x)
When the prices are the same, we have:
RAN (x) = RMN (x)
So, we have:
[tex](25 + 10x) (300 - 36x) = (100+ 20x) (100 - 12x)[/tex]
Divide through by 20
[tex](5 + 2x) (75 - 9x) = (10+ 2x) (50 - 6x)[/tex]
Using a graphing calculator, we have the following value of x
x = 2.5
Hence, the price of each calculator when the revenues of AN Calculators and MN Calculators are the same is $2.5
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