Question

A sales team estimates that the number of new phones they will sell is a function of the price that they set. They estimate that is they set the price at x dollars, they will sell f(x)=4080-10x. Therefore, the company's revenue is x(4080-10x).

Answer 1

Answer:

$204

Step-by-step explanation:

The question is at what price x will the company maximize revenue.

The revenue function is:

$R(x) = 4,080x-10x^2$

The price for which the derivate of the revenue function is zero is the price the maximizes revenue:

$R(x) = 4,080x-10x^2\\\frac{dR(x)}{dx}=0=4,080-20x\\x=\frac{4,080}{20}\\ x=\ 204$

The company will maximize its revenue when the price is $204.