The revenue function for a bicycle shop is given by R(x)=x⋅p(x) dollars where x is the number of units sold and p(x)=700−0.5x is the unit price. Find the maximum revenue.

Answer 1

R(x) = x ( 700 - 0.5x) = 700x - 0.5x^2

-b/(2a) = -700/(2* -0.5) = 700

max revenue occurs at $700

max revenue is 700 * (700 - 0.5*700) =

700 * (700 - 350) =

700 * 350 = 245000