Question

A model for a​ company's revenue from selling a software package is ​r(p)equals=minus−2.52.5p2plus+850850​p, where p is the price in dollars of the software. what price will maximize​ revenue? find the maximum revenue.

Answer 1

From the given, the revenue is given to be equal to,

r(p) = -2.5p^2 + 850p

To determine the price at which the maximum revenue is realized, we derive the equation and equate to zero as shown below.

dr(p) = -5p + 850

Equating to zero,

0 = -5p + 850

The value of p from the equation is 170.

Answer: $170