Benito wrote the equations shown about the figure to the right. Explain Benito's errors.
1 answer:
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Answer:
$302,500
Step-by-step explanation:
If cost (C) = $7, then Sales (S) = 37,500 units
If cost (C) = $15, then Sales (S) = 17,500 units
The slope of the linear relationship between units sold and cost is:
The linear equation that describes this relationship is:
The revenue function is given by:
The cost at which the derivative of the revenue equals zero is the cost that yields the maximum revenue.
The optimal cost is $11, therefore, the maximum revenue is: