2e Gradeboek nment Chapter 3 Section 32 Question 021 when a

2e Gradeboek nment Chapter 3, Section 3.2. Question 021 when a company charges a pdolars for one of its products, its revenue iso-en bv Revenue fp)-500p (40 -p) (a) for what prices does the company have ne revenue? Enter your answers in increasing ordes (b) what is a reasonable donain for f(p)

Solution

f(p) = 500p(40-p) = 0

=> p=0 or p=40

The company has no revenue when price is $0 and $40

(b) Domain of f(p) is given by :

500p(40-p) >=0

Now we have two intervals (0,40) and (40, infinity)

But any number in (40,infinity) does not satisfy the inequality 500p(40-p)>=0

Hence we must have 0 <= p < = 40