The equation is r(x) = 10x - 0.025x² where x is measured in thousands of toys produced, and r(x) is measured in thousands of dollars.
For maximum r, r'(x) = 0
It becomes: r'(x) = [tex]10-0.025\times2x=0[/tex]
= [tex]10-0.5x=0[/tex]
[tex]x=\frac{10}{0.05}[/tex]
x= 200
Hence, r(200) = [tex]10\times200-0.025\times200^{2}[/tex]
Solving it we get,
r(200) = 1000
Hence, maximum revenue the company can earn with this toy is $1000.
