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Math Help - Revenue Function

  1. #1
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    Revenue Function

    Hello,

    For the life of me I can't figure this one out..



    The demand equation for gourmet Chocolate brownies is: q = -40p + 600 where q is the quantity of gourmet chocolate brownies demand at a price of p for each gourmet chocolate brownie.

    What is the revenue function?





    I know that R(x) is should be price * units sold, but I can't find out how to make that work in this scenario

    Thanks,
    Jeep0909
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  2. #2
    MHF Contributor
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    "R(x) is should be price * units sold"

    Let's go with that.

    Price = p
    Units Sold = Demand = q = -40p + 600

    There is a bit of a problem with this, as Units Sold is not ALWAYS the same as Demand. If you have a supply problem, it doesn't work. However, in an environment of unlimited resources and availability, we have:

    Revenue = Price * Units Sold = p * q = p * (-40p + 600) = -40p^2 + 600p
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