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 nu
mber of barrels of oil on hand (in millions). (Each question is individual. NOT MULTIPLE CHOICE.)
a) How much should be charged for a barrel of oil if there are 9 million barrels on hand?
b) What quantity x will maximize revenue?
c) What price should be charged in order to maximize revenue?
<span>p= -1/10x+74 </span><span>we can write this as p = -.10x + 74 </span><span>a) How much should be charged for a barrel of oil if there are 9 million barrels on hand? </span>p = -.10(9) + 74=73.1 a barrel <span>b) What quantity x will maximize revenue? </span><span>r(x) = x(-.10x + 74) r(x) = -.10x^2 + 74x </span><span>Find the axis of symmetry of this equation x = -b/(2a) </span>x = -74/(2*(-0.10))=370<span>x = 370 million barrels
</span><span>c) What price should be charged in order to maximize revenue? </span><span>p = -.10(370) + 74 p = -37 + 74 p = $37 a barrel</span>
