1
advanced-math

A company's revenue RR is related to price pp by R(p)=−4p2+400pR(p) = -4p^2 + 400p. What price maximizes revenue?

A

$50

B

$100

C

$40

D

$25

Correct Answer: A

Choice A is the correct answer. Maximize the quadratic function by finding the vertex.

  1. p=−b/2ap = -b/2a.
  2. p=−400/(2(−4))=−400/−8=50p = -400 / (2(-4)) = -400 / -8 = 50.
  3. The optimal price is $50.

Choice B is incorrect. Choice C is incorrect. Choice D is incorrect.

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Set 18: Quadratic Equations and Functions 18