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Maximize Revenue:


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Let Revenue, R, depend on the number of units, x, according to the equation

revenue function to be maximized.

Since only one variable, x, is present, we can differentiate and set the result to 0 to find the maximum:

first derivative of the revenue function

Setting this to 0, we get

, or ,
or raising both sides to the 4th power.

the value of the number of units which maximizes the revenueunits.

General Contents

More Business Problems

Index