Maximum Revenue Linear Equation

Therefore if you want to know the maximum revenue and the associated price to get that maximum revenue you are asking to find the vertex of the parabola.

Maximum revenue linear equation. Find the profit equation of a business with a revenue function of 2000x 10x 2 and a cost function of 2000 500x. To calculate maximum revenue determine the revenue function and then find its maximum value. If the slope of the demand curve is 0 the consumers have a fixed price they will pay for however much of the product is available. R a p h 2 k.

At a price of 3 75 the demand is 4200. For example you could write something like p 500 1 50q. Where r is maximum revenue. Company finds that at a price of 4 demand is 4000.

Linear demand supply and time change models this topic is also in section 1 3 in finite mathematics applied calculusand finite mathematics and applied calculus. We previously noted that a linear demand price function has a negative slope. Set profit to equal revenue minus cost. P is the price of the good or service at max demand.

We should note the two limiting cases. For example the revenue equation 2000x 10x 2 and the cost equation 2000 500x can be combined as profit 2000x 10x 2 2000 500x or profit 10x 2 1500x 2000. For best viewing adjust the window width to at least the length of the line below. The vertex of a parabola is the point h k when you transform the equation into the standard parabolic form.

The formula for calculating the maximum revenue of an object is as follows. If the demand price is a linear function then revenue is a quadratic function. A theatre loses 5 seats every 25 cents added to ticket price. 1 3 linear functions and models linear cost revenue and profit next tutorial.

At what price is revenue a maximum. Revenue is the product of price times the number of units sold. Revenue equation r qp in terms of q. Linear demand equation max revenue.

Linear demand equation revenue equation and maximum revenue question. So transform your equation into this format you will. If the function for price is 5x 39 the line should be steadily decreasing from the y intercept of 39. Give a score to a sequence of numbers.