The total revenue for Joe’s Realty is given as the function R (X) = 200x-0.5x^2, where X is the number of Bella‘s book. What number of villas book produces the maximum revenue?

Respuesta :

To find the maximum revenue, we need to derivate the R(x) function and then solve the equation for x:

[tex]R(x)=200x-0.5x^2[/tex]

Derivate the function:

[tex]R^{\prime}(x)=200(1)-2(0.5)x=200-1x[/tex]

Then:

[tex]200-x=0[/tex]

Therefore:

[tex]x=200[/tex]

Which x represents the maximum point, now, replace this value on the R(x) function to find the maximum revenue:

[tex]R(x)=200(200)-0.5(200)^2=20000[/tex]