- #1
vaultDweller96
- 5
- 0
Suppose that the relationship between the tax rate t on imported shoes and the total sales S (in millions of dollars) is given by the function below:
S(t) = 5 − 9 * sqrt[3]{t}
t = ?
Find the tax rate t that maximizes revenue for the government. (Round your answer to three decimal places.)
(Hint: S(t) is the total sales, NOT the government's revenue! Think about how you calculate how much sales tax you pay to the government when you make a purchase).
I'm not sure how to solve this? Do I take the derivative and set it to 0 or?
Thanks :)
S(t) = 5 − 9 * sqrt[3]{t}
t = ?
Find the tax rate t that maximizes revenue for the government. (Round your answer to three decimal places.)
(Hint: S(t) is the total sales, NOT the government's revenue! Think about how you calculate how much sales tax you pay to the government when you make a purchase).
I'm not sure how to solve this? Do I take the derivative and set it to 0 or?
Thanks :)