Chapter 10.3, Problem 13E

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11th Edition

Ronald J. Harshbarger + 1 other

ISBN: 9781305108042

Textbook Problem

The function
*x* units. For

(a) find the maximum average revenue.

(b) show that
*x*- value where

**(a)**

To determine

**To calculate:** The maximum average revenue for the function

Explanation

**Given Information:**

The provided revenue function is:

And the average revenue is defined as:

**Formula used:**

If

And,

Where

**Calculation:**

Average revenue is given as:

The absolute maxima and absolute minima will occur only at the critical points. To calculate the critical points of the revenue function, find the first derivative of the function:

Use

**(b)**

To determine

**To prove:** The revenue function

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