Write at least two or three sentences to explain your answer.
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4. Assumptions: When looking at the graph, what did you assume about the data shown to make your estimate of the maximum revenue and the needed price to charge to reach this maximum revenue?Write at least two or three sentences to explain your answer.
PART II: Maximizing Revenue (Communication and Critical Thinking – includes QL6)
Write a 250–400 word essay (about 3–4 paragraphs) explaining how to solve the following problem:
The John Deere Company has found that the revenue from sales of heavy-duty tractors is a function of the unit price p that it charges. If the revenue R isR(p) = – 0.5p2 + 1900p , what unit price p should be charged to maximize revenue? What is the maximum revenue? What recommendations would you give the John Deere Company?