Question

A sales team estimates that the number of new phones it will sell is a function of the price that it sets. It estimates that if it

sets the price at x dollars, it will sell f(x) = 4,920 - 6x phones. Therefore, the company's revenue is x . (4,920 - 6x). Find

the price x that will maximize the company's revenue.

Answer 1

410

Explanation:

Revenue is given by the relation :

x . (4,920 - 6x)

F(x) = 4920x - 6x²

To obtain the price, x which maximizes revenue, we take the first derivative of the revenue function and equate to 0

F'(x) = 0

F'(x) = 4920 - 12x

4920 - 12x = 0

-12x = - 4920

x = 4920 / 12

x = 410

Price will be 410