Another word problem - YIKES!

• Jul 8th 2008, 09:44 AM
KAM
Another word problem - YIKES!
The marketing department at Texas Instruments has found that when certain calculators are sold at a price of p dollars the revenue (in dollars) as a function of the price is:
R(p)=-150p^2 + 21000p
a) What unit price should be established in order to maximize revenue?
b) If this price is charged what is the maximum revenue.
c) Graph the function R(p)

Any help with getting off to a start would be greatly appreciated!

Thanks!
• Jul 8th 2008, 09:50 AM
Moo
Quote:

Originally Posted by KAM
The marketing department at Texas Instruments has found that when certain calculators are sold at a price of p dollars the revenue (in dollars) as a function of the price is:
R(p)=-150p^2 + 21000p
a) What unit price should be established in order to maximize revenue?

Find the maximum of this function since you want to maximize the revenue.

That is to say find where $R'(p)=0$

Quote:

b) If this price is charged what is the maximum revenue.
If $p_{max}$ is this price, you're asked for $R(p_{max})$

Quote:

c) Graph the function R(p)
erm... ^^ you can do it, right ?

Good luck
• Jul 8th 2008, 09:59 AM
KAM
Got it!