SOLUTION: A manufacturer of microwave ovens believes that the revenue R, in dollars, that the company receives is related to the price P, in dollars, of an oven by the function R(P) = 100P
Question 1173498: A manufacturer of microwave ovens believes that the revenue R, in dollars, that the company receives is related to the price P, in dollars, of an oven by the function R(P) = 100P - 0.25P2. What price will give the maximum revenue? Answer by ikleyn(52778) (Show Source): You can put this solution on YOUR website! .
The quadratic function R(p) = 100p - 0.25p^2 has the zeroes at
100p - 0.25p^2 = 0, i.e. p = 0 and p = = 400.
It has the maximum exactly half way between the roots, i.e. at p = 200 dollars. ANSWER