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nadezda [96]
3 years ago
5

A toy company has determined that the revenue generated by a particular toy is modeled by the following equation: 10x - 0.025x²

The variable x is measured in thousands of toys produced, and r(x) is measured in thousands of dollars. What is the maximum revenue the company can earn with this toy?
Mathematics
1 answer:
Digiron [165]3 years ago
5 0

Answer:

Maximum revenue = 1000 thousands of dollars.

Explanation:

We have the revenue equation r(x)=10x - 0.025x^2, where x is measured in thousands of toys produced, and r(x) is measured in thousands of dollars.

At maximum revenue the derivative of equation is zero

So, r'(x)=0\\ \\10 - 0.025*2x=0\\ \\ x=10/0.05\\ \\ x=1000/5=200

So maximum revenue is when 200 thousands of toys are produced.

Maximum revenue, r(200)=10*200 - 0.025*200^2\\ \\ r(200)=1000

Maximum revenue = 1000 thousands of dollars.

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