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Help please!! The maximum value of total revenue correspond to a price of

Help please!! The maximum value of total revenue correspond to a price of-example-1
User JazzMaster
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Answer:

d. $30

Explanation:

When price and demand are linearly related like this, revenue is a quadratic function. Its maximum will be halfway between the prices that give a revenue of 0. Those prices are $60 (where demand is 0) and $0 (where demand is irrelevant). The halfway point is ($60 +0)/2 = $30.

As a check, you can figure revenue for some nearby points.

at $30, revenue is ($30)(15) = $450

at $24, revenue is ($24)(18) = $432

at $36, revenue is ($36)(12) = $432

This confirms revenue is maximized at a price of $30.

Help please!! The maximum value of total revenue correspond to a price of-example-1
User Ethan Gunderson
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