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The marketing research department for a company that manufactures and sells memo

ID: 2834758 • Letter: T

Question

The marketing research department for a company that manufactures and sells memory chips for microcomputers estastablished the following price-demand and revenue functions P(x) 75-3x which is the price demand function and R(x)=xp(x) = x (75-3x) which is the revenue functions where P(x) is the wholsale price in dollars at which X million chips can be sold, and R(x ) is in millions of dollars. Both functions have domain 1 find the value of x that iwll produce the maximum revenue. what is the maximum revenue? what is the wholesale price per chp that produces the maximum revenue?

Explanation / Answer

R(x) = 75x-3x^2

R'(x) =0

75 - 6x =0

x = 75/6 = 25/2 = 12.5

Maximum revenue = 75x - 3x^2 = 75(25/2) - 3*(25/2)^2 = 1875/4 = 468.75

P(x) = 75 - 3x = 75 - 3(25/2) = 75 - 75/2 = 75/2 = 37.5

So the wholesale price per chp that produces the maximum revenue = 37.5