Maximum Revenue Calculator

Formula

The formula to calculate the maximum revenue is:

\[ \text{R} = \text{p} \times \text{Q} \]

Where:

$ \text{R} $ is the maximum revenue
$ \text{p} $ is the price of the good or service at maximum demand
$ \text{Q} $ is the total quantity of goods at maximum demand

What is Maximum Revenue?

Maximum revenue is defined as the total maximum amount of revenue a product or service can yield at maximum demand and price. Determining the maximum demand of a good and the price at that level involves taking the derivative of a function. For more information on this, visit our price elasticity of demand calculator.

Example Calculation 1

Let's assume the following values:

Price at Maximum Demand ($ \text{p} $): $50
Quantity at Maximum Demand ($ \text{Q} $): 200 units

Step 1: Multiply the price by the quantity:

\[ 50 \times 200 = 10000 \]

Therefore, the maximum revenue is $10,000.

Example Calculation 2

Let's assume the following values:

Price at Maximum Demand ($ \text{p} $): $30
Quantity at Maximum Demand ($ \text{Q} $): 150 units

Step 1: Multiply the price by the quantity:

\[ 30 \times 150 = 4500 \]

Therefore, the maximum revenue is $4,500.