ABSTRACT
Therefore, the length of the fenced area should be 5,000 meters and the two sides should be 2,500 meters each. Example 11.2 The marketing manager of an oil company knows that the demand for the oil varies with its charged price. The company has determined that annual total revenue R (in thousands of dollars) is a function of the price p (in dollars). Specifically,
R = f(p) = -50p2 + 500p Determine the price which should be charged in order to maximize total revenue. What is the maximum value of annual total revenue? Solution: The revenue function is quadratic and its graph is a parabola which is concave downward as shown in Figure 11.2.
