SOLUTION: The total annual revenue for a product is given by R(x) = 10,000x-2x^2 dollars, where x is the number of units sold. (a) To maximize revenue, how many units must be sold? (b) Fi

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Question 1195777: The total annual revenue for a product is given by R(x) = 10,000x-2x^2
dollars, where x is the number of units sold.
(a) To maximize revenue, how many units must be sold?
(b) Find the maximum possible annual revenue?

Answer by math_helper(2461)   (Show Source): You can put this solution on YOUR website!

R(x) =
dR/dx = 10000-4x
At min or max, dR/dx = 0: 10000-4x = 0 ==> x = 2500 units for max revenue.
You can see this is a max (and not a min) by looking at 2nd deriv. which is -4 ==> concave down ==> critical point is a local maximum.
Plug in x=2500 into R(x) to get the max revenue. To convince yourself, you should plug in x=2501 and x=2499 to see those R(x) values are less than R(2500).
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