maximum revenue

Question

Suppose that the manufacturer of a DVD player has found? that, when the unit price is p? dollars, the revenue R? (in dollars) as a function of the price p is
R(p)=−2.5p2+850p.
?(a) For what price will the revenue be? maximized?
?(b) What is the maximum? revenue?

.

Answer 1

R(p) = -2.5p² + 850p

 

       = -2.5(p² -340)

 

       = 72250 - 2.5(p - 170)²

 

From this (a) Revenue is maximized when p = $170

              (b) Maximum revenue is $72250