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14 February, 05:14

Find the largest possible revenue from the demand equation "Q = - 2p + 1000

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  1. 14 February, 05:29
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    Revenue=quantity x price = (-2p+1000) (p) = - 2p^2+1000p

    The maximum revenue will occur when the first derivative is zero so when 2 (-2p) + 1000=0; p=250

    Which generates 125,000 in revenue

    Try prices of 245 and 255 and you will see they both are less than 250 thereby proving the max revenue is 250
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