SOLUTION: The dollar price for a barrel of oil sold at a certain oil refinery tends to follow the demand equation below, where x is the number of barrels of oil on hand (in millions).
p
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p
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Question 920519: The dollar price for a barrel of oil sold at a certain oil refinery tends to follow the demand equation below, where x is the number of barrels of oil on hand (in millions).
p= -1/4x+160
a. How much should be charged for a barrel of oil if there are 3 million barrels on hand? Round to nearest cent
b. What quantity x will maximize revenue?
c. What price should be charges in order to maximize revenue?
You can put this solution on YOUR website! p= -1/4x+160
a) p= (-1/4)3 +160
b) R = px
R = -.25x^2 + 160x = -.25(x - 320)^2 + 25,600. x = 320 will maximize revenue
c) = p= (-1/4)320 +160
