MOCK TEST Q6 ALTERNATIVE WAY ISSUE

[Brajesh Kedia]

What's the issue if I tend to go this way? 

[Naushad C.K.]

I think it is NOT  (5 + x)   it should be (2 + x). 

[Brajesh Kedia]

I am clearly saying alternative way.. Even written in Photo I am trying to get Revenue. Wish to know what's wrong going on here? 

Uploading more photoes 

[Anand Iyer]

you're maximising the revenue, not the profit with your method.  THe max.revenue is 112.5K, whereas max.profit is 72K

[Brajesh Kedia]

Yes that's what I meant. How x values can be different is my concern??

We have been discussing it from long time ourselves but could not come to conclusion?

Anyone ? 

My point is we are increasing the possibility after SP or Profit to get them maximum and limited by number of newspaper sold so how can x vary if we go through any approach. Note - x = 2.5 here and for solution shown to us it is 4.

Regards,

Brajesh

[Anand Iyer]

we'd been discussing off-line on this for some time.  

I hope you're convinced by my last mail.  Essentially,  If you want to maximize revenue, you can just sell more items, but that doesn't mean you're maximizing profit.  isn't it? 

If you're still not convinced,  I'll leave to others to take this up...

[Mathematics 1 Support 2]

Hi Anand, you are right.

Brajesh,

Nice question. Here is the reason that we can not get the maximum profit by increasing the revenue only.

Here you are taking a factor reducing the number of paper but you are ignoring the factor that the cost price of the whole paper also is reducing. Suppose if I say that the selling price is 8 Rs rather than 5 and no information about the cost price, then your revenue will again increase but it is not saying how much profit you are getting. So we can not comment on profit only looking at revenue.

Hope I am clear to you.

Best wishes,

Rahul

[sandip biswas]

Dear Brajesh

Max revenue and max profit do not occur for same value of x because expenses(Revenue-profit) is not constant for all values of x. Hope the graph below will give you the intuition you need.