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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Exponential Growth Model

The relation that represents an exponential function is: