Answer:
The number of units that must be sold in order to have the greatest revenue is 50,000 units
Step-by-step explanation:
Given;
y = -0.0002x² + 20x
where;
y is the revenue
x is the units of the product
The equation above is a quadratic equation, to obtain the value of x (units) that will give maximum value of y (revenue), we differentiate the equation.
dy/dx = -0.0004x + 20
Now, equate the differential value to zero, in order to get the value of x that will make the equation maximum.
-0.0004x + 20 = 0
-0.0004x = -20
x = (-20) / (-0.0004)
x = 50,000 units
Therefore, the number of units that must be sold in order to have the greatest revenue is 50,000 units
