Question 425780
Hercules Films is also deciding on the price of the video release of it's film Bride of the son of Frankenstein. Again, marketing estimates that at a price of p dollars it can sell q=324000-18000p copies, but each copy cost $4 to make. What price will give the greatest profit? 
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Profit = Revenue-Cost
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Revenue = p(324000-p)
Cost = 4p
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Profit = p(324000-p)-4p
Profit = 323996p - p^2
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That is a quadratic with a = -1 and b = 323996
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Maximum profit occurs when p = -b/(2a) = -323996/(-2) = $161,998
That price will give the greatest profit.
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Cheers,
Stan H.
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