Results 1 to 2 of 2

Math Help - maximizing revenue

  1. #1
    Newbie
    Joined
    Jul 2010
    Posts
    18

    maximizing revenue

    If demand for a product (the amount that can be sold at a gven price) is given by the equation:
    D(p)= 1000-250p
    what is the maximum revenue?

    revenue = p*(1000-250p)

    how do i find max revenue? do i take the derivative?
    Follow Math Help Forum on Facebook and Google+

  2. #2
    Newbie
    Joined
    Aug 2009
    From
    Sweden!
    Posts
    18
    Quote Originally Posted by jamesk486 View Post
    If demand for a product (the amount that can be sold at a gven price) is given by the equation:
    D(p)= 1000-250p
    what is the maximum revenue?

    revenue = p*(1000-250p)

    how do i find max revenue? do i take the derivative?
    Yes. Let's call the revenue function r(p).
    r(p)=p*(1000-250p) -> r(p)=1000p-250p^2.
    Now you have to find p_max by solving r'(p)=0, then calculate r(p_max). Are you with me or should I show you?
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Maximizing revenue
    Posted in the Calculus Forum
    Replies: 4
    Last Post: April 7th 2009, 04:54 PM
  2. maximizing revenue
    Posted in the Calculus Forum
    Replies: 1
    Last Post: January 26th 2009, 06:16 PM
  3. Maximizing Revenue!
    Posted in the Calculus Forum
    Replies: 4
    Last Post: December 1st 2008, 02:33 AM
  4. Maximizing Revenue
    Posted in the Business Math Forum
    Replies: 0
    Last Post: November 29th 2008, 01:11 PM
  5. Maximizing revenue
    Posted in the Calculus Forum
    Replies: 0
    Last Post: October 27th 2008, 10:14 PM

Search Tags


/mathhelpforum @mathhelpforum