Question

A company manufactures and sells x cellphones per week. The weekly price-demand and cost equations are given below P=400-.5x and C(x)=20000+130x

What price should the company charge for the phones and how many phones should be produced to maximize the weekly revenue. What is maximum weekly Revenue?

Answers

Steve
revenue is sales*price

R(x) = x(400-.5x) = 400x - .5x^2
dR/dx = 400 - x
dR/dx = 0 when x = 400
R(400) = 400(400-200) = 80000

Cost doesn't figure into revenue. Now, if you want profit, subtract cost from revenue.

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