document.write( "Question 1119854: Hercules Films is deciding on the price of the video release of its film Son of Frankenstein. Its marketing people estimate that at a price of p dollars, it can sell a total of q = 200,000-20,000p copies. What price will bring in the greatest revenue? \n" ); document.write( "

Algebra.Com's Answer #735483 by ikleyn(52778) $\"\"$ $\"About$

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document.write( "The revenue = the product of the price by the quantity sold:  R = p*q,   or\r\n" );
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document.write( "R = p*(200000-20000*p) = 20000*p*(10-p).\r\n" );
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document.write( "The roots of this quadratic function are p= 0  and  p= 10;  hence, the maximum of the quadratic function is located \r\n" );
document.write( "exactly half way between the roots, i.e. at p= 5.\r\n" );
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document.write( "Answer.  The price p= 5 dollars per video provides the maximum revenue.\r\n" );
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