Solve the problem.Economists use what is called a Leffer curve to predict the government revenue for tax rates from 0% to 100%. Economists agree that the end points of the curve generate 0 revenue, but disagree on the tax rate that produces the maximum revenue. Suppose an economist produces this rational function,
where R is revenue in millions at a tax rate of x percent. Use a graphing calculator to graph the function. What tax rate produces the maximum revenue? What is the maximum revenue?
A. 39.6%; $209 million
B. 37.5%; $210 million
C. 34.9%; $207 million
D. 35.8%; $209 million
Answer: A
Mathematics
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