Question

A company's revenue (in dollars) can be modeled by the function

(will attach function in a sec!)

where p is the price in dollars of the company's product. What price (in dollars) will maximize the revenue?

Round to the nearest penny.

Answer 1

R(p) = -15p² + 200p + 10,000
To find the maximum of the function, we take the first derivative and equate to 0:

R'(p) = -30p + 200
0 = -30p + 200
p = 6.67

A price of $6.67 will maximize revenue.