SAT Math · Nonlinear functions · medium
A company's monthly revenue, in dollars, from selling x units of a product is modeled by R(x) = -5x² + 200x. How many units should the…
A company's monthly revenue, in dollars, from selling units of a product is modeled by . How many units should the company sell to maximize revenue?
Answer and explanation
Answer: A: 20
The revenue function is a downward-opening parabola, so its maximum is at the vertex. The vertex has units, choice A. The maximum revenue is dollars. Choice B (40) is where revenue returns to zero, the other -intercept, so it is twice the vertex. Choice C (200) is the coefficient of . Choice D (10) comes from using or dividing incorrectly. The question asks for the number of units, not the revenue.
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