The demand function of the company is given by $p(x)=16-\frac{x}{250},$ where p is the price per unit and x units is the demand, then the value of x for which total revenue will be maximum is :

2000

The correct answer is Option (3) → 2000

The total revenue function is,

$R(x)=p(x).x$

$=x(16-\frac{x}{250})$

$=16x-\frac{x^2}{250}$

To find Max. Revenue,

$\frac{dR}{dx}=0$

$⇒16-\frac{2x}{250}=0$

$⇒x=2000$