The selling price for q units of a product is given by the equation p = 250-25q. The cost of producing q units of the product is:
C = 100+50q.
What is the maximum revenue that can be generated? What is the maximum profit that can be generated?
total sale = SP * sold qty
it'll be max when first derivative is zero
250 - 50q = 0
q = 5
max revenue = (250-125)*5 = 625
Profit = revenue - cost
=(250-25q - 100-50q)*q
=150q - 75q^2
max profit when first derivative is zero, 150 - 150q = 0, q = 1
Max profit = 150 - 75 = 75
Could you tell us the source of these questions. I doubt that these are GMAT questions.