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Virtual Math Learning Center

Virtual Math Learning Center Texas A&M University Virtual Math Learning Center

Increasing and Decreasing and Local Extrema for a Revenue Function

Author: ShaNisaa RaSun

The following problem is solved in this video. It is recommended that you try to solve the problem before watching the video. You can click "Answer" to reveal the answer to the problem.

Problem: An office supply company sells external web cameras. The price-demand function for the web cameras is \(p(x)=-0.2x+56\), where \(p(x)\) is the price, in dollars, per camera when \(x\) web cameras are purchased. Find the intervals where the company's revenue function, \(R\), is increasing/decreasing as well as the local extrema of the revenue function, assuming \(R(x)\) is the company's revenue, in dollars, when \(x\) web cameras are sold.

The revenue function is increasing on the interval \((0,140)\) and decreasing on the interval \((140,\infty)\). It has a local maximum of \(\$3920\) when \(x=140\) web cameras are sold. 

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