ethanmatthews4430 ethanmatthews4430
  • 25-09-2018
  • Mathematics
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The total revenue for dante's villas is given as the function r(x)=300x−0.2x2, where x is the number of rooms filled. What number of rooms filled produces the maximum revenue?

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Pitymys Pitymys
  • 04-10-2018

Solution:- Given that the total revenue function

[tex]r(x)=300x-0.2x^2[/tex] ,where x is the number of rooms filled

Now, differentiating the function w.r.t. x,we get

[tex]r'(x)=300-0.4x[/tex]

To find critical points ,Put [tex]r'(x)=0[/tex]

[tex]\Rightarrow300-0.4x=0\\\Rightarrow0.4x=300\\\Rightarrow x=750\\\text{Now}\\r"(x)=-0.4 <0\text{(by second derivate test)})\\\text{Maximum revenue will produce by filling x=750 rooms in dante's villas.}[/tex]


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