Question

Please help with this question

Answer 1

The maximum revenue will be
`R=\$25,000` at price
`p=\$100.`

Explanation:

Given:

`R=-2.5p^2+500p`

Find the vertex of the parabola represented by given equation:

`p_v=(-b)/(2a)=(-500)/(2\cdot (-2.5))=(500)/(5)=100`

When
`p=\$100,` then

`R=-2.5\cdot 100^2+500\cdot 100=-2.5\cdot 10,000+50,000=-25,000+50,000=25,000`

The maximum revenue will be
`R=\$25,000` at price
`p=\$100.`