A firm has a demand function P = 32 – Q
At what quantity is the total revenue maximised?
All i think about this question is to change it to 32-Q^2, then i
think you have to find the derivative but it doesn't make sense to
me still.
If you could give me a hint on what i need to look for that would be
great.
I would really appreciate your help.
finding the roots is one way (which we can do by factoring or the quadratic formula or completing the square ...) but it's easier to just find the vertex directly. we can do this through completing the square or by using the vertex formula.
Vertex formula:
The vertex for a quadratic of the form occurs when:
Completing the square:
we complete the square to get the quadratic in the form:
when in this form, the vertex is given by:
here, the x-value is your Q