If, in a monopoly market, the demand for a product is

p = 140 - 0.50x

and the revenue function is

R = px,

where x is the number of units sold, what price will maximize revenue?

If, in a monopoly market, the demand for a product is

p = 140 - 0.50x

and the revenue function is

R = px,

where x is the number of units sold, what price will maximize revenue?

The revenue function R=x (140-0.50x)

=140x-0.50x ^ 2

In a monopoly revenue is maximized when marginal revenue is zero.

DR/dx=0 = 140x-0.50x ^ 2

x=140

When x=140 the demand = 140 - (140*0.5) is 70.

The revenue will be 140*70 = $9,800.