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The selling price for q units of a product is given by the

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Intern
Joined: 23 Jul 2008
Posts: 7
The selling price for q units of a product is given by the [#permalink]

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23 Jul 2008, 09:49
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

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?
SVP
Joined: 30 Apr 2008
Posts: 1874
Location: Oklahoma City
Schools: Hard Knocks
Re: Another problem solving question [#permalink]

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23 Jul 2008, 09:54
The same principles apply to this question as to the other question you posed regarding maximum revenues with sales.
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Director
Joined: 27 May 2008
Posts: 541
Re: Another problem solving question [#permalink]

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23 Jul 2008, 10:02
wc2005 wrote:
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
= (250-25q)*q
=250q -25q^2

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.
Re: Another problem solving question   [#permalink] 23 Jul 2008, 10:02
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The selling price for q units of a product is given by the

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