If R(x) denotes the revenue where \(R(x)=4000x-10x^2\), then the maximum value of R(x) occurs when x equals :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 200
At a maximum the marginal revenue is zero:
\(R'(x) = 4000-20x = 0\)
\(x = 200\)
\(R''(x) = -20 \lt 0\), so x = 200 gives the maximum.
(The maximum revenue is \(R(200) = 8,00,000-4,00,000 = 4,00,000\).)