word problem

Question

Suppose that the price per unit in dollars of a cell phone production is modeled by p=50−0.01x, where x is in thousands of phones produced, and the revenue represented by thousands of dollars is R=x⋅

 

 

Find the production level that will maximize revenue_______To maximize revenue, phones should be produced.

 (HINT: Remember that x is in thousands of phones.)

Answer 1

That formula for R(x) = x means that when x=1 (a thousand phones), then revenue is also one (a thousand dollars), i.e. revenue is $1 per phone!  I do not believe it. I doubt, even, that Profit is as low as $1 per phone.

 

So I am going to stop here. Do you agree?