The demand equation for the deluxe marble kit produced by Whoville Marble Works (WMW) is p = 600 - 3q -0.01q² where p is the price WMW sets for the kit and q is the number of kits that they sell in a week. (a) Find the price that WMW should set to maximize their weekly revenue, the corresponding revenue maximizing output and their maximum weekly revenue. Round your answers to 2 decimal places. (b) Show how you know that the revenue you found in (a) is WMW's absolute maximum weekly revenue.
The demand equation for the deluxe marble kit produced by Whoville Marble Works (WMW) is p = 600 - 3q -0.01q² where p is the price WMW sets for the kit and q is the number of kits that they sell in a week. (a) Find the price that WMW should set to maximize their weekly revenue, the corresponding revenue maximizing output and their maximum weekly revenue. Round your answers to 2 decimal places. (b) Show how you know that the revenue you found in (a) is WMW's absolute maximum weekly revenue.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:The demand equation for the deluxe marble kit produced by
Whoville Marble Works (WMW) is
p = 600 - 3q -0.01q²
where p is the price WMW sets for the kit and q is the number of
kits that they sell in a week.
(a) Find the price that WMW should set to maximize their weekly
revenue, the corresponding revenue maximizing output and their
maximum weekly revenue.
Round your answers to 2 decimal places.
(b) Show how you know that the revenue you found in (a) is
WMW's absolute maximum weekly revenue.
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