Optimization Help: Revenue Maximization

label Calculus
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Apr 17th, 2015

Revenue = cost per unit * total units 

x(500+3(90-x)= 500x+270x-3x^2 
770x-3x^2 
then take the derivative of this= 770-6x
770-6x=0 
x=128.3

Apr 17th, 2015

wrong one, this is the right one:

x(500+5(90-x)= 500x+450x-5x^2 
950x-5x^2=190x-x^2
then take the derivative of this= 190-2x
190-2x=0, x=95

so maximum revenue is 45125

Apr 17th, 2015

This answer did not come out correct

Apr 17th, 2015

revenue R = (90 - x)(500 + 5x) 

maximizing R is the same as maximizing R/10, call it r 

45000+450x-500x-5x^2=x^2-10x+4500

derivative=2x-10=0, x=5

so rent charged should be 500+5*5=525

my bad thought it's to miximize revenue

Apr 17th, 2015

hmm it is still not coming out correct

Apr 17th, 2015

revenue = R(x) = (500 + 5x)(90 - x) 
R(x) = -5x2 - 50x + 45000 
dR/dx = -10x-50=0, x=-5
500+5(-5)=475, how is it now? got the sign wrong before.........

Apr 17th, 2015

perfect thank you

Apr 17th, 2015

I'm sorry I had a lot of assignments yesterday and couldn't answer you in time. Hope you understand..I remember I still got wrong the other question. Can you invite me? I wanna try to fix that problem later :)

Apr 17th, 2015

do i just repost that question? it is still up and i don't want to say that I'm not satisfied with you lol...but I'm not sure how to invite you to it

Apr 17th, 2015

ok, then I will try to find it myself. Or you can repost as a free question. Your choice

Apr 17th, 2015

ok i reposted it

Apr 17th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Apr 17th, 2015
...
Apr 17th, 2015
Sep 24th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer