Answer to Question #234993 in Microeconomics for Joy

Question

a)     compute the maximum revenue combinations of products using the maximum revenue criterion        (, )                                                                               

                                        

Answer 1

The first thing to do is to find the derivative of the revenue function. Next is setting the derivative to be equal to zero. Use algebra to solve for the number of items at zero. This will give you the total number that will maximize the revenue.