Mathematics
Mathematics
Problem
A company estimates that the price (in dollars) required to sell units of a product is given by . What quantity maximizes the company’s total revenue? a) b) c) d)Intuitive explanation
Revenue is the product of price and quantity: . Substitute the price equation to express revenue purely in terms of , then find where its derivative equals zero—that's the quantity that maximizes profit. This turns a real-world constraint into a straightforward calculus optimization problem.
Intuitive explanation
Revenue is the product of price and quantity: . Substitute the price equation to express revenue purely in terms of , then find where its derivative equals zero—that's the quantity that maximizes profit. This turns a real-world constraint into a straightforward calculus optimization problem.