SOLUTION: The marketing department at the John Deere company has found that the revenue from the sales of heavy-duty tractors is a function of the unit price, p, in dollars If the revenue,
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Question 188911: The marketing department at the John Deere company has found that the revenue from the sales of heavy-duty tractors is a function of the unit price, p, in dollars If the revenue, R is given by
R(p) = - p2 + 1900p
What unit price should be established in order to maximize revenue? (use the vertex formula.)
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
The x-coordinate of the vertex of a parabola whose equation is in the form:
 = ax^2 + bx + c)
is given by:
For your given function,
 = -p^2 + 1900p)
a = -1 and b = 1900, so:
} = 950)
Hence the unit price to maximize revenue is $950. Less than a thousand dollars for a new heavy duty John Deere tractor? Is someone nuts? Fire the marketing guy who came up with that revenue function.
 = -p^2 + 190000p)
giving a max revenue price of $95,000 - that I might believe.
John
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