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MY NOTES A business (Widgets, Inc) forms a linear model of its widget pricing function based on the following information: Let x represent the number
MY NOTES A business (Widgets, Inc) forms a linear model of its widget pricing function based on the following information: Let x represent the number of widgets sold and p(x) the price per widget in dollars. The firm begins by selling x = 250 widgets at a set price of $30 each. After holding a "sale", the firm proposes that a $10 discount on the price will yield an increase of 20 more widgets sold. This leads to a pricing model: P(x) = 30 -_ (x - 250) Use this to model to answer the following. (a) Based on the fact that the firm wants both sales and the price to be positive, what is the appropriate domain of the pricing function p(x)? Enter your answer using interval notation. Domain: (b) What is the revenue function? (revenue is total sales income) R ( X ) = (c) What sales price p yields maximum revenue? P dollars per widget
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