Part 1: Revenue The revenue function is defined as R(x) = x p(x). 1. Find the revenue function, R(x) 2. Find the marginal revenue function, R'(x) 3. Find and interpret the marginal revenue for x = 700 units

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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P(x) = -0.25x + 550 C(x) = 0.0002x^3 - 0.2x^2 + 15x + 50,000
Part 1: Revenue
The revenue function is defined as R(x) = x p(x).
1. Find the revenue function, R(x)
2.
Find the marginal revenue function, R'(x)
3. Find and interpret the marginal revenue for x = 700 units
4. Use the 1st derivative test to determine when the revenue function is increasing
and decreasing. Then, how many chairs (x) need to be sold in order to maximize
the revenue? What is the maximum revenue?
5. What wholesale price (to the nearest dollar) should the company price the chairs
at in order to achieve the maximum revenue?
Transcribed Image Text:Part 1: Revenue The revenue function is defined as R(x) = x p(x). 1. Find the revenue function, R(x) 2. Find the marginal revenue function, R'(x) 3. Find and interpret the marginal revenue for x = 700 units 4. Use the 1st derivative test to determine when the revenue function is increasing and decreasing. Then, how many chairs (x) need to be sold in order to maximize the revenue? What is the maximum revenue? 5. What wholesale price (to the nearest dollar) should the company price the chairs at in order to achieve the maximum revenue?
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