Write a 250 – 400 word essay (about 3 – 4 paragraphs) explaining how to solve the following problem:

 

Write a 250 – 400 word essay (about 3 – 4 paragraphs) explaining how to solve the following problem:

 

The John Deere Company has found that the revenue from sales of heavy-duty tractors is a function of the unit price p that it charges.  If the revenue R is R(p) = 0.5p2 + 1900p , what unit price p should be charged to maximize revenue?  What is the maximum revenue? What recommendations would you give the John Deere Company?

Pretend you are explaining this to someone who has not taken a math class in several years. Be sure to include the following in your explanation:

  • what the p and R represent,
  • the actual value of the maximum revenue and the price needed to achieve this value, and
  • recommendations you would give the John Deere Company   (Hint: How can the data you calculated be used to benefit the company? For example, why shouldn’t the company charge $2000 or more for each tractor?)

 

 

Use proper English and full sentences with ideas separated into paragraphs. Spelling and grammar count!

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