Demand for an electric fan is related to its selling price p (in dollars) by the equation n = 3680 − 80 p where n is the number of fans that can be sold per month at a price p . Find the selling price that will maximize the revenue.

The price of $23 will maximize the total revenue.

Explanation:

Revenue is a function of price multiplied by quantity. Thus, the equation for revenue is,

Let p be the price.

Revenue = (3680 - 80p) * p

Revenue = 3680p - 80p²

To find the price that will maximize the revenue, we need to take the derivative of this equation as derivative tell us about change.

Taking derivative,

d/dp = 1 * 3680 - 2 * 80p

0 = 3680 - 160p

160p = 3680

p = 3680 / 160

p = 23

So, at price p=$23, the total revenue will be maximized.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answer; i do believe that the correct answer is ; ///are valued more highly than their cost;