Question
A TV cable company has 4800 subscribers who are each paying RM18 per
month. It can get 150 more subscribers for each RM0.50 decrease in the monthly
fee. What rate will yield maximum revenue and what will this revenue be.
ANSWER: RM17, RM86700 -BUT I WANT THE STEPS-
month. It can get 150 more subscribers for each RM0.50 decrease in the monthly
fee. What rate will yield maximum revenue and what will this revenue be.
ANSWER: RM17, RM86700 -BUT I WANT THE STEPS-
Answers
oobleck
suppose there are x price decreases. then
revenue = price * quantity = (18-0.50x)(4800+150x)
now just find the vertex of the parabola, and translate that to quantity and revenue.
revenue = price * quantity = (18-0.50x)(4800+150x)
now just find the vertex of the parabola, and translate that to quantity and revenue.