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A company manufactures and sells x cellphones per week. The weekly price-demand and cost equations are given below P=400-.5x and C(x)=20000+130x

What price should the company charge for the phones and how many phones should be produced to maximize the weekly revenue. What is maximum weekly Revenue?

  • calculus -

    revenue is sales*price

    R(x) = x(400-.5x) = 400x - .5x^2
    dR/dx = 400 - x
    dR/dx = 0 when x = 400
    R(400) = 400(400-200) = 80000

    Cost doesn't figure into revenue. Now, if you want profit, subtract cost from revenue.

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