The Better Baby Buggy Co. has just come out with a new model, the Turbo. The market research department predicts that the demand equation for Turbos is given by q = −2p + 288, where q is the number of buggies it can sell in a month if the price is $p per buggy. At what price should it sell the buggies to get the largest revenue?

1.$=__________

2.What is the largest monthly revenue?
$___________

Question

The Better Baby Buggy Co. has just come out with a new model, the Turbo. The market research department predicts that the demand equation for Turbos is given by q = −2p + 288, where q is the number of buggies it can sell in a month if the price is $p per buggy. At what price should it sell the buggies to get the largest revenue?

1.$=__________

2.What is the largest monthly revenue?
$___________

anonymous · Answer

giving medals out

anonymous · Answer

Revenue R =  Quantity Q * Unit Price P 
=   (−2P + 288) * P  = - 2P^2 + 288P
Maximize Revenue:
R' = -4P + 288 
R' = 0  --> P = 288/4 = $72

anonymous · Answer

Largest monthly revenue:
 R( 72) = - 2 (72)^2 + 288 * 72 =  $10,368