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The total revenue for Fred's Estates LLC is given as the function R(x) = 200x -0.25x2, where x is the number of villas booked. What number of villas booked
produces the maximum revenue?


Sagot :

Answer:

400 villas

Step-by-step explanation:

Since R(x)=200x−0.25x2 is a quadratic function with a negative leading coefficient, it represents a parabola opening downward. So its vertex will be the maximum of the function. If the coefficients are labeled, we have a=−0.25, b=200, and c=0. Then the vertex is found as follows.

x=−b/2a=−200/2(−0.25)=400

Therefore, maximum revenue will be attained when 400 villas are booked.