## How do you maximize revenue from a price function?

Find the first derivative of the revenue function. In calculus, the derivative of any function is used to find the rate of change of that function. The maximum value of a given function occurs when the derivative equals zero. So, to maximize the revenue, find the first derivative of the revenue function.

## How do you find the revenue function from a price function?

1) Revenue is equal to the number of units sold times the price per unit. To obtain the revenue function, multiply the output level by the price function.

**What is the price when revenue is maximized?**

The revenue-maximizing price is the cost at which a business will make the most revenue for a given item.

**What is the formula for revenue function?**

For example, the most common revenue function is that for total revenue in the equation y = bx, where y is the total revenue, b is the selling price per unit of sales, and x is the number of units sold.

### What’s the revenue function?

It is called a linear cost function. Revenue Function. Revenue is the total payment received from selling a good or performing a service. The revenue function, R( ), reflects the revenue from selling “ ” amount of output items at a price of “p” per item.

### What is revenue function formula?

A formula or equation representing the way in which particular items of income behave when plotted on a graph. For example, the most common revenue function is that for total revenue in the equation y = bx, where y is the total revenue, b is the selling price per unit of sales, and x is the number of units sold.

**What is total revenue function?**

As noted above, total revenue is the full amount of total sales of goods and services. It is calculated by multiplying the total amount of goods and services sold by the price of the goods and services.

**What are cost and revenue functions?**

= No of units produced and sold. It is called a linear cost function. Revenue Function. Revenue is the total payment received from selling a good or performing a service. The revenue function, R( ), reflects the revenue from selling “ ” amount of output items at a price of “p” per item.

#### What is a revenue function?

#### How do you find total revenue from price and quantity?

Total revenue is calculated with this formula: TR = P * Q, or Total Revenue = Price * Quantity.