Ansewr please?

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  • Ian H
    Lv 7
    4 weeks ago

    Quantity demanded in units per period, (for example daily sales) represented by Q  

    The variable representing price is p, so the demand function is 

    Sales Q = 150 – 10p,  where p is price 

     

    Revenue R is price per item * number sold 

    R = p*Q = 150p – 10p^2 

    https://www.wolframalpha.com/input/?i=R+%3D+150p+%... 

     

    a) To find maximum R, differentiate and set that result equal to zero. 

    dR/dp = 150 – 20p = 0  

    Revenue R is at a max when price p = 7.5 

    Sales Q when total revenue is at its max is given by Q = 150 – 75 = 75 

     

    b) The question repeats “find price at which total revenue is a max” 

    It seems likely that this should have asked for that max revenue. 

    If so, R max = 150*7.5 – 10*7.5^2 = 562.5 

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