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- Math 1325 Final (Take-Home Portion) -12 Save the Layout References Mailings Review A A Aa A A E * AAA EE EE x A A Name Date
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Answer #1

demand function is

p=3750 - 0.08.12

revenue function is given by

R=ap

R=r (3750 - 0.08.r)

R= 3750r -0.08.73

R= -0.08.r3 + 3750.0......................revenue function

.

.

.

R= -0.08r+ 3750.

take derivative = 0

(-0.08.rº + 3750.x) = 0

-0.24.x2 + 3750 = 0

0.24.c? = 3750

3750 i=024

x = 15625

r = 125

.

so 125 computers must be sold for the maximum revenue

.

.

.

.

R= -0.08r+ 3750.

take x=125

R= -0.08(125)3 + 3750(125)

R= -156250 + 468750

R=312500......................maximum revenue

.

so maximum revenue is $312500

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