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stiv31 [10]
3 years ago
7

Find the number of units that produce a maximum revenue, R =95x-0.1x^2, where R is the total revenue in dollars and x is the num

ber of units sold
Mathematics
1 answer:
svp [43]3 years ago
3 0

Answer:

x=475 units

Step-by-step explanation:

Method 1

The given revenue function is R(x)=95x-0.1x^2.


We rewrite this function in the vertex form by completing the square.


\Rightarrow R(x)=-0.1x^2+95x.


\Rightarrow R(x)=-0.1(x^2-950x)+0.


We add and subtract half the coefficient of x multiplied by a factor of -0.1, which is -0.1(-\frac{950}{2})^2=-0.1( -475)^2 to get,

R(x)=-0.1(x^2-950x)+-0.1(-475)^2--0.1(-475)^2 +0.


We factor -0.1 out of the first two expressions again to get,


R(x)=-0.1(x^2-950x+(-475)^2)--0.1(-475)^2 +0.


We now got a perfect square.


\Rightarrow R(x)=-0.1(x-475)^2+22562.5.


Therefore the maximum revenue occurs when x=475 units were sold.


Method 2


Use derivatives to find the x-value of the maximum point.

R(x)=-0.1x^2+95x


R'(x)=-0.2x+95


At maximum point,


R'(x)=0


\Rightarrow -0.2x+95=0.


\Rightarrow -0.2x=-95.


\Rightarrow x=\frac{-95}{-0.2}.


\Rightarrow x=475.















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