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19 June, 13:07

A bicycle manufacturing company knows that the equation R=-2.5p? + 500 p models

the relationship between the price (p) and the revenue (R) for one of its product lines.

What is the maximum revenue possible?

$

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Answers (1)
  1. 19 June, 15:11
    0
    The maximum revenue is $25,000

    Step-by-step explanation:

    The model equation is;

    R = - 2.5p^2 + 500p

    To find the maximum value, we differentiate this and set result = 0

    The first differential of this model equation is - 5p + 500

    we set this to zero to get the maximum price

    5p = 500

    p = 500/5

    p = 100

    Now to get the maximum revenue, we simply substitute the value of the maximum price

    That would be - 2.5 (100) ^2 + 500 (100)

    = - 2.5 (10,000) + 50,000

    = 25,000 + 50,000

    = 25,000
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