Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack
GMAT Club

 It is currently 22 Mar 2017, 17:39

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

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

Author Message
Intern
Joined: 23 Jul 2008
Posts: 7
Followers: 0

Kudos [?]: 0 [0], given: 0

The selling price for q units of a product is given by the [#permalink]

### Show Tags

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: 1887
Location: Oklahoma City
Schools: Hard Knocks
Followers: 41

Kudos [?]: 581 [0], given: 32

Re: Another problem solving question [#permalink]

### Show Tags

23 Jul 2008, 09:54
The same principles apply to this question as to the other question you posed regarding maximum revenues with sales.
_________________

------------------------------------
J Allen Morris
**I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a.

GMAT Club Premium Membership - big benefits and savings

Director
Joined: 27 May 2008
Posts: 549
Followers: 8

Kudos [?]: 327 [0], given: 0

Re: Another problem solving question [#permalink]

### Show Tags

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
Display posts from previous: Sort by