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Suppose that the relationship between the tax rate t on imported shoes and the total sales S (in millions of dollars) is given by the
Suppose that the relationship between the tax rate t on imported shoes and the total sales S (in millions of dollars) is given by the function below:
S(t)=8-9root(3,t)
Find the tax rate t that maximizes revenue for the government. (Round your answer to three decimal places.) (Hint: S(t) is the total sales, NOT the government's revenue! Think about how you calculate how much sales tax you pay to the government when you make a purchase).
t =
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