Thread: DEMAND EQUATION & REVENUE help please

Here is the problem:

Demand Equation: p=-x+15x
x= number of toy guns sold (thousands)
p= pricer per toy gun

c(x)=5x is the cost to produce x amount (thousands) of toy guns.

1. Find the revenue of the function & profit
2. How many toy guns needed to maximize profit?

THANKS SO MUCH

Originally Posted by Amylinh

Here is the problem:

Demand Equation: p=-x+15x
x= number of toy guns sold (thousands)
p= pricer per toy gun

c(x)=5x is the cost to produce x amount (thousands) of toy guns.

1. Find the revenue of the function & profit
2. How many toy guns needed to maximize profit?

THANKS SO MUCH

Revenue = Amount sold * Cost
R(x) = x*(p)
(Your 'p' is wrong btw)

Profit = Revenue - Cost

To maximise profit you need to differentiate your profit equation and let it equal 0.