Suppose that the manufacturer of a gas clothes dryer has found that when the unit price is p dollars, the revenue R in dollars is R(p)= -4p^2+4000pWhat unit price should be established for the dryer to maximize revenue?What is the maximum revenue?
Accepted Solution
A:
Answer: The maximum revenue is $1,000,000.
The function that is given is a quadratic equation and the graph would be an upside down parabola.
Therefore, the maximum revenue would be at the vertex of the parabola.
To find the vertex, we can use the expression -b/2a to find the x-value.
It would be -4000/2(-4) = 500
Now, input 500 for p and you will get a revenue of 1,000,000.