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?