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?