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Choose the One Alternative That Best Completes the Statement or Answers

Question 222

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Choose the one alternative that best completes the statement or answers the question.
-Economists use what is called a Leffer curve to predict the government revenue for tax rates from 0%0 \% to 100%.100 \% . Economists agree that the end points of the curve generate 0 revenue, but disagree on the tax rate that produces t maximum revenue. Suppose an economist produces this rational function
R(x) =10x(100x) 50+xR ( x ) = \frac { 10 x ( 100 - x ) } { 50 + x } , where RR is revenue in millions at a tax rate of xx percent. Use a graphing calculator to graph the function. What tax rate produces the maximum revenue? What is the maximum revenue?


A) 41.2%;$26441.2 \% ; \$ 264 million
B) 34.0%;$27134.0 \% ; \$ 271 million
C) 36.6%;$26836.6 \% ; \$ 268 million
D) 35.8%;$27635.8 \% ; \$ 276 million

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