Question 57·Hard·Nonlinear Functions
A technology startup models its daily revenue, in thousands of dollars, from selling a new subscription service with the function
where is the price, in dollars, of one subscription and . For what price will the daily revenue be maximized?
(Express the answer as an integer)
For SAT questions asking you to maximize or minimize a function on a closed interval, first identify the interval and remember that any extremum must occur at an endpoint or where the function’s slope is zero (a critical point). If you’re comfortable with calculus, take the derivative, set it equal to zero, and solve for the critical points; if not, or to save time, use your graphing calculator (like Desmos) to plot the function, then use the built-in maximum/minimum tool restricted to the given interval. Finally, compare function values at the candidate points and choose the one that gives the greatest (or least) value, making sure you answer in the units the question asks for (here, the price in dollars).
Hints
Focus on what is being maximized
You are not asked for the maximum revenue itself, but for the price (between 4 and 10) that makes as large as possible. Think about how to find where a function reaches its highest point on a given interval.
Where can a smooth function reach a maximum on a closed interval?
For a smooth function like this one, the maximum on will occur either at an endpoint ( or ) or at an interior point where the graph changes from going up to going down (where the slope is zero). Identify these candidate points.
How to find interior candidates
One algebraic way to find interior candidates is to take the derivative of , set it equal to 0, and solve the resulting equation for . Then compare the revenue at those -values with the revenue at and .
Desmos Guide
Enter the revenue function
In Desmos, type the function using as the variable:
R(x) = -1/2 * (x - 4)^2 * (x - 10) + 32
This will graph the revenue (in thousands of dollars) versus the price .
Focus on the correct domain
Adjust the x-axis so you can clearly see from to (for example, set the x-axis from 0 to 12). Adjust the y-axis so that all relevant revenue values are visible (for example, 0 to 60). You should now see the curve of over the interval .
Find the maximum on the interval
Use Desmos’s maximum feature: either click on the graph near its highest point between and and choose “maximum,” or type maximum(R, 4, 10) in a new line. Read off the x-coordinate of this highest point on the graph; that x-value is the price that maximizes the daily revenue.
Step-by-step Explanation
Understand the goal and the domain
The function
gives the daily revenue (in thousands of dollars) when the price is dollars, with .
We want the price in this interval that makes as large as possible (maximizes the revenue). For a smooth function on a closed interval, the maximum can occur:
- at an endpoint ( or ), or
- at an interior point where the graph changes from increasing to decreasing (where the slope is ).
Rewrite in expanded form (optional but helpful)
It can be helpful to expand the expression so we can work with standard polynomial tools.
First expand :
Now multiply by :
Multiply by and then add :
So an equivalent form is
Find where the slope is zero (critical points)
The revenue will be maximized at a point where the curve stops going up and starts going down, which happens where the slope (derivative) is .
Differentiate term by term:
- The derivative of is .
- The derivative of is .
- The derivative of is .
- The derivative of is .
So the slope function is
Set this equal to zero to find critical points:
Multiply both sides by to clear the fraction:
Divide by :
Recognize the candidates for a maximum
The quadratic equation from the previous step,
has two solutions. These two -values are critical points where the slope is zero.
Any maximum of on must occur at one of these two critical points or at an endpoint of the interval ( or ). So the candidate prices to check are:
- the two solutions of , and
- and .
Solve, compare revenues, and choose the maximum
First, solve the quadratic
We look for two numbers that multiply to and add to : they are and . So
which gives critical points and .
Now evaluate the revenue at all candidates (remember ):
- At :
- , so .
- At :
- , ,
- , so .
- At :
- , so .
The largest revenue value is (thousand dollars), which occurs when . Therefore, the daily revenue is maximized when the subscription price is dollars.