CALC HELP: A producer finds that demand for his commodity obeys a linear demand equation p+0.4x=4, where p is in dollars and x in thousands of units.
Find the level of production that will maximize the revenue.

The level of production is ?? (in thousands of units).

Question

CALC HELP: A producer finds that demand for his commodity obeys a linear demand equation p+0.4x=4, where  p is in dollars and x in thousands of units. 
Find the level of production that will maximize the revenue.


The level of production is ?? (in thousands of units).

anonymous · Answer

Are you sure you copied that equation down right?

P is dollars, x is units produced (in thousands)

So

p+.4x=4

Therefore

p=4-.4x

The more units produced, the less dollars this guy gets. So he'd dollars production by making nothing and getting x=0, p=4.

Which makes absolutely no sense