Math Problem Statement

A model for a company’s revenue is R = -12p^2 + 600p + 15000, where p is the price in peso of the company’s product. What price will maximize the revenue? Each of them is asked to show his solution. Who among the two is correct?

Solution

To determine who has the correct solution, let's analyze the given revenue function and calculate the price that maximizes it.

The revenue function provided is: R=12p2+600p+15000R = -12p^2 + 600p + 15000

This function is a quadratic equation in terms of pp (the price), where:

  • The coefficient of p2p^2 is a=12a = -12,
  • The coefficient of pp is b=600b = 600,
  • The constant term is c=15000c = 15000.

Since the coefficient of p2p^2 is negative, the parabola opens downward, meaning there is a maximum point.

Finding the Vertex (Maximum Revenue Point)

The formula for the vertex of a quadratic equation ax2+bx+cax^2 + bx + c is given by: p=b2ap = -\frac{b}{2a}

Substituting the values: p=6002×12=60024=25p = -\frac{600}{2 \times -12} = \frac{600}{24} = 25

Conclusion

  • Ben's solution is correct. He calculated p=25p = 25, which is the price that maximizes the revenue.
  • Arem's solution contains an error, as he calculated p=30p = 30, which is incorrect.

Final Answer

The correct answer is: Ben

Would you like further details on the calculation or the reasoning?


Here are five related questions for further exploration:

  1. How would the maximum revenue change if the revenue function had a different coefficient for p2p^2?
  2. What if the revenue function opened upwards? How would that affect the revenue?
  3. Can we determine the maximum revenue amount at p=25p = 25?
  4. How would we interpret the vertex in a cost function instead of a revenue function?
  5. How would you solve this problem using calculus instead of algebra?

Tip: For quadratic functions, the vertex formula b2a-\frac{b}{2a} quickly identifies the maximum or minimum without needing to complete the square.

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Math Problem Analysis

Mathematical Concepts

Algebra
Quadratic Equations
Revenue Maximization

Formulas

Vertex formula for a quadratic equation p = -b / (2a)

Theorems

Vertex of a parabola

Suitable Grade Level

Grades 9-11