Question

D(p)−200e −0

1p where p is price per unit. Recall that total revenue is given by R(p)=pD(p). At what price per unit p will the revenue be maximum?
A) $5
B) $9
C) $10
D) $20

Answer 1

To find the price per unit at which revenue is maximized, we need to find the critical points of the revenue function.

Step-by-step explanation:

The revenue function is given by R(p) = pD(p), where p is the price per unit. To find the price per unit at which revenue is maximized, we need to find the critical points of the revenue function. So, let's start by finding the derivative of R(p) with respect to p.

D'(p) - 200e^(-0.1p)

To find the critical points, we set the derivative equal to 0 and solve for p:

D'(p) = 200e^(-0.1p)

We can solve this equation numerically or graphically. Once we find the critical points, we can evaluate the revenue function at those points to determine which gives the highest revenue.