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):
The x-coordinate of the vertex of a parabola whose equation is in the form:
is given by:
For your given function,
a = -1 and b = 1900, so:
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.
giving a max revenue price of $95,000 - that I might believe.
