TheNextOne
New member
- Joined
- Mar 18, 2006
- Messages
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The owner of an peach orchard must decide when to pick her crop. She can sell the peaches for $8 per kilogram if she sells them now, in which case each tree yields an average of 5 kilograms of peaches. The yield increases by half a kilogram per week for the next 5 weeks, but the price per kilogram decreases by $0.50 per kilogram each week.
How many weeks from now should the owner pick the peaches in order to maximize her revenue?
This is what i did:
TR= pq
p= 8-0.5x
q= 5 + 0.5x
TR= -0.25x^2 + 1.5x + 40
MR= -0.5x + 1.5
x= 3
Check:
MR'= -0.5---- thus it is a maximum.
is this correct?
How many weeks from now should the owner pick the peaches in order to maximize her revenue?
This is what i did:
TR= pq
p= 8-0.5x
q= 5 + 0.5x
TR= -0.25x^2 + 1.5x + 40
MR= -0.5x + 1.5
x= 3
Check:
MR'= -0.5---- thus it is a maximum.
is this correct?