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 :
Answer & explanation
Correct answer: option 3
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,
$\frac{dR}{dx}=0$
$⇒16-\frac{2x}{250}=0$
$⇒x=2000$