Suppose that the price per unit in dollars of a cell phone production is modeled by p = $45 − 0.0125x, where x is in thousands of phones produced, and the revenue represented by thousands of dollars is R = x ⋅ p. Find the production level that will maximize revenue.
A soccer stadium holds 62,000 spectators. With a ticket price of $11, the average attendance has been 26,000. When the price dropped to $9, the average attendance rose to 31,000. Assuming that attendance is linearly related to ticket price, what ticket price would maximize revenue?
The revenue function of a fictional cable company can be modeled by the polynomial function:
R(t) = −0.037t4 + 1.414t3 − 19.777t2 + 118.696t − 205.332
where R represents the revenue in millions of dollars and t represents the year, with t = 1 corresponding to 2001. Using MS-Excel, create a graph of the Revenue Function and determine over which intervals is the revenue for the company increasing? Over which intervals is the revenue for the company decreasing?
