Respuesta :
Answer and Explanation:
Relationship between price and demand:
D = (2400 - p)/(0.100)
p = 2400 - 0.100*D
then:
Total revenue = p*D
= 2400*D - 0.100*D^2
for a maximum revenue:
dR/dD = 0
2400 - 0.100*2D = 0
D = 12000
this is considered a demand
for maximum profit, the initial cost of automobile engines should be less required.
The level of demand when demand when the total revenue is maximized is 12,000.
Relationship between the price and demand:
D = (2400 - p)/(0.100)
p = 2400 - 0.100*D
Total revenue = Price * Demand
Total revenue = 2400*D - 0.100*D^2
For a maximum revenue:
dR/dD = 0
Now we input the data
2400 - 0.100*2D = 0
2400 - 0.200D
0.2D = 2400
D - 2400 / 0.2
D = 12,000
In conclusion, the level of demand when demand when the total revenue is maximized is 12,000.
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