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The revenue from selling x units of a product is given by y=-0.0002x^2+20x. How many must be sold in order to have the greatest revenue? Please show work.

User TedMilker
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1 Answer

3 votes

Answer:

The number of units that must be sold in order to have the greatest revenue is 50,000 units

Explanation:

Given;

y = -0.0002x² + 20x

where;

y is the revenue

x is the units of the product

The equation above is a quadratic equation, to obtain the value of x (units) that will give maximum value of y (revenue), we differentiate the equation.

dy/dx = -0.0004x + 20

Now, equate the differential value to zero, in order to get the value of x that will make the equation maximum.

-0.0004x + 20 = 0

-0.0004x = -20

x = (-20) / (-0.0004)

x = 50,000 units

Therefore, the number of units that must be sold in order to have the greatest revenue is 50,000 units

User Hossein Rashno
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