the demand function for a particular brand of LCD TV is Given by p=2800-35x wher
ID: 1168080 • Letter: T
Question
the demand function for a particular brand of LCD TV is Given by p=2800-35x where p is the price per unit in dollars when x thousand television sets are sold. Determine the number of sets that must be sold in order to maximize the revenue. To the nearest whole dollar, what is the maximum revenue? To the nearest cent, what is th price per unit when the revenue is maximized? the demand function for a particular brand of LCD TV is Given by p=2800-35x where p is the price per unit in dollars when x thousand television sets are sold. Determine the number of sets that must be sold in order to maximize the revenue. To the nearest whole dollar, what is the maximum revenue? To the nearest cent, what is th price per unit when the revenue is maximized? the demand function for a particular brand of LCD TV is Given by p=2800-35x where p is the price per unit in dollars when x thousand television sets are sold. Determine the number of sets that must be sold in order to maximize the revenue. To the nearest whole dollar, what is the maximum revenue? To the nearest cent, what is th price per unit when the revenue is maximized?Explanation / Answer
To calculate revenue we multiply the demand function by q, which in our case is x
p=2800-35x
TR= p*x=2800x-35x2
Max Revenue= 2800-70x=0 First Order Condition d(TR)/dq =0
Or
70x=2800
X=40 units (in thousand units)
P=2800-35*40
P=$1400
The total revenue against 40 units of output will be = 1400*40 = $56,000
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