Question

A manufacturer finds that the revenue generated by selling x units Of a certain commodity is given by the function R (x) = 60x - 0.4x(squared) where the revenue R (x) Is measured in dollars.
What is the maximum revenue, and how many units should be manufactured to obtain this maximum

Answer 1

Maximum revenue is $4,500 and the number of units is 150 units

R(x) = 60x - 0.2x^2

The revenue is maximum when the derivative of R(x) = 0.

dR(x)/dx = 60 - 0.4x = 0

0.4x = 60

x = 60/0.4 = 150

Therefore, maximum revenue is 60(150) - 0.2(150)^2 = 9000 - 4500 = $4,500.

Maximum revenue is $4,500 and the number of units is 150 units

The gross amount of money that may be made by selling a specific quantity of items is known as revenue. This may be stated as a function of the quantity of sold commodities, as we may be aware. Additionally, by using a similar procedure to optimize functions with the aid of differentiation, we can maximize revenue.

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