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-   -   How to find max revenue (https://www.askmehelpdesk.com/showthread.php?t=397469)

  • Sep 18, 2009, 12:38 AM
    619bolts
    how to find max revenue
    what will be the max revenue if I am given 800+60x-x^2
  • Sep 18, 2009, 04:59 AM
    ArcSine
    Assuming that what you've written is your Revenue (as a function of x units sold), first note that it's a quadratic with a negative leading coefficient. That means that its graph opens downward, and so its vertex represents its maximum value. Rewrite that quadratic into vertex form, and the y-coordinate of the vertex represents maximum Revenue. (And of course, the x-coordinate will tell you the number of units at which max Rev is achieved.)

    Alternatively, take the first derivative of the Revenue function, and find the x-value which makes the derivative function equal to zero. Evaluate the Revenue function at this particular x-value, and you have your max Revenue.

    (Or just for grins, do it both ways and make sure you produce the same result.)

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