Choose the One Alternative That Best Completes the Statement or Answers

question 273

Multiple Choice

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 $0 \%$ to $100 \%$ . 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
$R ( x ) = \frac { 10 x ( 100 - x ) } { 15 + x }$ , 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) \(31.4 \% ; \$ 464\) million
• B) \(29.7 \% ; \$ 467\) million
• C) \(28.1 \% ; \$ 470\) million
• D) \(26.5 \%\); \(\$ 469\) million

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