An international candy company, Longo’s Bubblegum Emporium (LBE), finds that the quantity, q, of sticks of bubblegum sold is a function of the price, p, per stick of gum. The company’s revenue, R, is therefore given by the equation R = q p. Moreover, LBE finds that q = 1000 e^−p, where p is measured in dollars. (a) At what price should the candy company LBE sell its bubblegum in order to maximize its revenue?(b) What is the maximum total revenue LBE can earn?
An international candy company, Longo’s Bubblegum Emporium (LBE), finds that the quantity, q, of sticks of bubblegum sold is a function of the price, p, per stick of gum. The company’s revenue, R, is therefore given by the equation R = q p. Moreover, LBE finds that q = 1000 e^−p, where p is measured in dollars. (a) At what price should the candy company LBE sell its bubblegum in order to maximize its revenue?(b) What is the maximum total revenue LBE can earn?
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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An international candy company, Longo’s Bubblegum Emporium (LBE), finds that the quantity, q, of sticks of bubblegum sold is a function of the price, p, per stick of gum. The company’s revenue, R, is therefore given by the equation R = q p. Moreover, LBE finds that q = 1000 e^−p, where p is measured in dollars.
(a) At what price should the candy company LBE sell its bubblegum in order to maximize its revenue?
(b) What is the maximum total revenue LBE can earn?
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