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Math 211 Business Calculus Applications of Derivatives

Math 211 Business Calculus Applications of Derivatives

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– p. 16/34<br />

Maximize Revenue<br />

If the price for a product is p, the revenue (in<br />

thousands <strong>of</strong> dollars) is approximated by<br />

R = −0.05p 2 +0.98p+18<br />

What price maximizes revenue<br />

Solution:<br />

R ′ (p) = −0.1p+0.98 = 0<br />

⇐⇒ 0.1p = 0.98<br />

⇐⇒ p = 9.8

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