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Choose the One Alternative That Best Completes the Statement or Answers

Question 245

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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 tt maximum revenue. Suppose an economist produces this rational function
R(x) =10x(100−x) 25+xR ( x ) = \frac { 10 x ( 100 - x ) } { 25 + 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) 38.4%;$38338.4 \% ; \$ 383 million
B) 27.0%;$37927.0 \% ; \$ 379 million
C) 28.8%;$27228.8 \% ; \$ 272 million
D) 30.9%30.9 \% ; $382\$ 382 million

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