Math Problem Statement
Consider the following demand function:
p=D(x)=126−2x‾‾‾‾‾‾‾‾‾√ Step 2 of 2 : Find the value of x that maximizes the revenue.
Solution
To find the value of that maximizes revenue, let's go through the steps. Revenue, , is the product of price and quantity :
Given:
Thus, the revenue function becomes: or
To maximize , take the derivative of with respect to and set it to zero.
Step 1: Differentiate
- Differentiate with respect to : .
- For , rewrite as , then differentiate:
So: [ R'(x)
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Math Problem Analysis
Mathematical Concepts
Revenue Maximization
Differentiation
Optimization
Formulas
Revenue function R(x) = x * p
Demand function p = D(x) = 126 - 2√x
Differentiation of R(x) with respect to x to find critical points
Theorems
First Derivative Test for Maxima and Minima
Suitable Grade Level
Grades 11-12
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