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CUET · MATHS · PYQ PAPER 2025

The demand function (in Rs.) for a product is \(P=20-0.25 x\). where P is the price per unit and \(x\) is the number of units sold. Find the price of one unit when the revenue is maximized

  1. A Rs. 20
  2. B Rs. 10
  3. C Rs. 30
  4. D Rs. 40
Verified Solution

Answer & Solution

Correct Answer

(B) Rs. 10

Step-by-step Solution

Detailed explanation

\(R = P \cdot x\) \(R = (20 - 0.25x)x = 20x - 0.25x^2\) \(\frac{dR}{dx} = 20 - 0.5x\) \(20 - 0.5x = 0 \Rightarrow x = 40\) \(P = 20 - 0.25(40)\) \(P = 20 - 10\) \(P = 10\)