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3 years ago

Find the largest possible revenue from the demand equation "Q= -2p + 1000

1 answer:

3 0

Revenue=quantity x price= (-2p+1000) (p)= -2p^2+1000p
The maximum revenue will occur when the first derivative is zero so when 2(-2p)+1000=0;p=250
Which generates 125,000 in revenue
Try prices of 245 and 255 and you will see they both are less than 250 thereby proving the max revenue is 250

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