The marketing research department for a company that manufactures and sells memo
ID: 2836380 • Letter: T
Question
The marketing research department for a company that manufactures and sells memory chips for microcomputers established the following price-demand and revenue functions:
p(x)=96-4x
R(x)=x(96-4x)=96x-4x^2
where p(x) is the per chip wholesale price in dollars at which x million chips can be sold, and R(x) is in millions of dollars. Both functions have a domain 0> and equal x > equals 20.
a) Find the output that will produce the maximum revenue. ____________million chips.
b) What is the maximum revenue? $ ____________ million
c) What is the wholesale price per chip that produces the maximum revenue? $___________
Explanation / Answer
for maximum revenue :-
dR/dx =0
96-8x=0
x=12 million chips
maximum revenue = $576 million
wholesale price per chip that produces the maximum revenue =$ 96
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