Problem 823

We found that the marketing research department for the company that manufactures and sells memory chips for microcomputers established the following price-demand and revenue functions.

P(x) = 105 – 4x (price-demand function)

R(x) = xp(x) = x(105-4x) (Revenue function)

Where  p(x) is the wholesale price in dollars at which x million chips can be sold, and R(x) is in millions of dollars. Both functions have domain

1 ≤ x ≤ 21.

Find the output that will produce the maximum revenue.

What is the maximum revenue?

What is the wholesale per chip that produces the maximum revenue?








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