Andy C. answered • 07/31/18

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The demand is given in terms of the price as it should.

BUT...

We need the price in terms of X, the # of planes.

So we have to find the inverse...

x - 1600 = -40p

(x-1600)/(-40) = p

Revenue function R(x) = quantity x price = x*P(x) = x(x-1600)/(-40)

The max occurs at the zeros of this parabola function.

The zeros are x=0 and x=1600

The average is 800.

So the max occurs for x=800 planes

(800 - 1600)/-40 = -800/-40 = 20

800 planes for $20