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23 May, 23:21

A model for a company's revenue from selling a software package is r (p) equals=minus-2.52.5p2plus+850850 p, where p is the price in dollars of the software. what price will maximize revenue? find the maximum revenue.

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  1. 23 May, 23:33
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    From the given, the revenue is given to be equal to,

    r (p) = - 2.5p^2 + 850p

    To determine the price at which the maximum revenue is realized, we derive the equation and equate to zero as shown below.

    dr (p) = - 5p + 850

    Equating to zero,

    0 = - 5p + 850

    The value of p from the equation is 170.

    Answer: $170
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