The revenue derived from the production of x units of a particular commodity is $R ( x ) = \frac { 48 x - x ^ { 2 } } { x ^ { 2 } + 48 }$ million dollars. What level of production results in maximum revenue? What is the maximum revenue? Round numbers to two decimal places, if necessary.
A) Maximum at x = 6 and maximum revenue is R(6) = 18 (million dollars)
B) Maximum at x = 6 and maximum revenue is R(6) = 2.05 (thousand dollars)
C) Maximum at x = 6 and maximum revenue is R(6) = 3 (million dollars)
D) Maximum at x = 7 and maximum revenue is R(7) = 2.05 (million dollars)

Question

Quizplus · Accepted Answer

The maximum revenue occurs at x = 6, and substituting x = 6 into the revenue function gives R(6) = 3 million dollars.

The Revenue Derived from the Production of X Units of a Particular