Answer:
The maximum revenue is $25,000
Step-by-step explanation:
The model equation is;
R = -2.5p^2 + 500p
To find the maximum value, we differentiate this and set result = 0
The first differential of this model equation is -5p + 500
we set this to zero to get the maximum price
5p = 500
p= 500/5
p = 100
Now to get the maximum revenue, we simply substitute the value of the maximum price
That would be -2.5(100)^2 + 500(100)
= -2.5(10,000) + 50,000
= 25,000 + 50,000
= 25,000
