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A model for a company’s revenue from selling a software package is R(p)=-2.5p^2+600p

User Enricoza
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Complete question is;

A model for a company's revenue from selling a software package is R = -2.5p² + 500p, where p is the price in dollars of the software. What price will maximize revenue? Find the maximum revenue.

Answer:

Price to maximize revenue = $100

Maximum revenue = $25000

Explanation:

We are told that:

R = -2.5p² + 500p, where p is the price in dollars of the software.

The maximum revenue will occur at the vertex of the parabola.

Thus, the price at this vertex is;

p = -b/2a

Where a = - 2.5 and b = 500

Thus:

p = -500/(2 × -2.5)

p = -500/-5

p = 100 in dollars

Maximum revenue at this price is;

R(100) = -2.5(100)² + 500(100)

R(100) = -25000 + 50000

R(100) = $25000

User KjMag
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