Expert: Paul Klarreich - 11/19/2009

Question
Demand for a good is given by P=100*e^(0.00125X)
（$p/unit, x units/month）

Determine the unit price and monthly sales that will maximize revenue


Answer
Questioner: Terry
Country: Canada
Category: Calculus
Private: No
Subject: calculus, maximizing revenue
Question: Demand for a good is given by P=100*e^(0.00125X)
（$p/unit, x units/month）

Determine the unit price and monthly sales that will maximize revenue
...........................................
If revenue is given by R = Px, then

R = 100* x e^(0.00125x)

Now do your standard max-min stuff. (Differentiate, set = 0, solve.)