A company manufactures 2 models of MP3 players. Let x represent the number (in m

Question

A company manufactures 2 models of MP3 players. Let x represent the number (in millions) of the first model made, and let y represent the number (in millions) of the second model made.

Revenue equation is
R(x,y)+160x+110y-2x^2-3y^2-xy
Find the marginal Revenue equations:
Rx(x,y)=
Ry(x,y)=
We can achieve maximum revenue when both partial derivatives are equal to zero. Set Rx=0 and Ry=0 and solve as a system of equations to find the production levels that will maximize revenue.
Revenue will be maximized when:
x=
y=

Explanation / Answer

Rx=160-4x-y Ry=110-6y-x Make them equal to zero then 4x+y=160 x+6y=110 solving the above x=850/23 y=280/23

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