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1 April, 12:23

The total revenue for Fred's Estates LLC is given as the function R (x) = 200x-0.4x2, where x is the number of rooms booked. What number of rooms booked produces the maximum revenue?

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  1. 1 April, 12:52
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    250 rooms gives R (250) = 25000

    Step-by-step explanation:

    R (x) = 200x-0.4x^2

    Set derivative to zero to find min or max.

    dR (x) / dx = 200 - 0.8x

    200 - 0.8x = 0

    x = 250

    R (250) = 25000

    R (249) = R (251) = 24999.6

    Solution is a maximum.
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