1. **State the problem:** We want to find the price $P$ that maximizes the revenue function $$R = 2000 - 1000 (P - 2)^2.$$
2. **Recall the rule for maximization:** A function is maximized where its derivative equals zero. The derivative given is $$R' = 2000 (P - 2).$$
3. **Set the derivative equal to zero:**
$$2000 (P - 2) = 0$$
4. **Solve for $P$:**
$$\cancel{2000} (P - 2) = \cancel{0}$$
$$P - 2 = 0$$
$$P = 2$$
5. **Interpretation:** The price that maximizes revenue is $P = 2.00$.
6. **Check the options:** The correct choice is c) 2.00.
**Final answer:** The price that maximizes revenue is **2.00**.
Revenue Maximization C21A22
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