SOLUTION: A manufacturer of microwave ovens believes that the revenue R, in dollars, the company receives is related to the price P, in dollars, of an oven given by the function R(P)=125P-0

Algebra ->  Quadratic Equations and Parabolas -> SOLUTION: A manufacturer of microwave ovens believes that the revenue R, in dollars, the company receives is related to the price P, in dollars, of an oven given by the function R(P)=125P-0      Log On


   

Question 31457: A manufacturer of microwave ovens believes that the revenue R, in dollars, the company receives is related to the price P, in dollars, of an oven given by the function R(P)=125P-0.25P^2. What price of an oven will give the maximun revenue?
-(b/(2a)=
-(125)/(2*-.25)=
-(125/.5)=250
Price of an oven=$250.00
This answer matches my book but my question is doesn't 250= the x coordinate of the vertex and then shouldn't I be solving for the y coordinate to get the maximum revenue? Meaning why don't I then substitute 250 for x and solve for y or am I confusing the use of the phrase "maximum revenue" with a maximum value of a quadratic function problem?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
You have found the price which gives the maximum revenue.
You were NOT asked what the maximum revenue was;
instead you were asked what the price was that would
give you the maximum revenue. That price is $250
Cheers,
stan H.