Revenue As A Function Of Price

R x price per unit number of units produced or sold.

Revenue as a function of price. An amusement park charges 8 admission and average of 2000 visitors per day. If in a monopoly market the demand function for a product is p 140 0 80x and the revenue function is r px where x is the number of units sold and p is the price per unit what price will maximize revenue. R revenue p price per unit x number of units sold. Revenue is equal to the number of units sold times the price per unit.

Calculating the revenue function. To obtain the cost function add fixed cost and variable cost together. Click here to enter or edit your answer r 5000p 40 p round your answer for price to two decimal places. Suppose x denotes the number of units a company plan to produce or sell usaually a revenue function r x is set up as follows.

If one type of product is being sold at one price the revenue function is simply. Sometimes the price per unit is a function x say p x it is often called a demand function too because when a. Then calculate f 4249 f 4250 and f 4251. Find the revenue function.

B write revenue as a function of price and then find the price that maximizes revenue. The higher the price the less the demand. Revenue is maximized at price of 11 18 per pound. For instance if a lemonade stand sold x glasses of lemonade at 50 cents each the revenue function.

To obtain the revenue function multiply the output level by the price function. Finding the quadratic function. What is your observation. If x is the demand or how many items are sold and p is the price we can then say that x depends on p.