We found that the marketing research department for the company that manufacture

Question

We found that the marketing research department for the company that manufactures and sells memory chips for microcomputers established the following price-demand and revenue functions: p(x)=90-3x PRICE-DEMAND FUNCTION R(x)=xp(x)=x(90-3x) REVENUE FUNCTION where p(x0 is the wholesale price in dollars at which x million chips can be sold, and R(x) is in millions of dollars. Both functions have domain 1<=x<=18 (A) Find the output that will produce the max revenue.___________millions chips(Integer or fraction) (B) What is max revenue? (C) What wholesale price per chip that produces the maximum revenue.

Explanation / Answer

You can always use calculus to figure this out. The maximum revenue can be found by taking the derivative of the revenue equation, which would end up as 96 - 8x Setting this to 0 (where the slope is zero for the graph, which would indicate either a maximum or a minimum) gives us 0 = 96-8x 96 = 8x x = 12 To test this, find the revenue of 0, the revenue of 20, and the revenue of 12. I know this, but you'll find that 12 is the maximum. To find the maximum revenue, plug in 12 into the revenue equation (or just reference the previous step, since we already did it). for the price, plug 12 into the price equation.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.