Answer:
Maximum revenue = 1000 thousands of dollars.
Explanation:
We have the revenue equation [tex]r(x)=10x - 0.025x^2[/tex], where x is measured in thousands of toys produced, and r(x) is measured in thousands of dollars.
At maximum revenue the derivative of equation is zero
So, [tex]r'(x)=0\\ \\10 - 0.025*2x=0\\ \\ x=10/0.05\\ \\ x=1000/5=200[/tex]
So maximum revenue is when 200 thousands of toys are produced.
Maximum revenue, [tex]r(200)=10*200 - 0.025*200^2\\ \\ r(200)=1000[/tex]
Maximum revenue = 1000 thousands of dollars.
