revenue
r(x) = (1000+4x)(500-8x)
Just find the vertex of that parabola to get the x desired, then figure the other items based on that.
The Hotel Thomasina has 500 rooms. Currently the hotel is filled . The daily rental is $ 1000 per room.
For every $ 4 increase in rent the demand for rooms decreases by 8 rooms.
Let x = the number of $ 4 increases that can be made.
What should x be so as to maximize the revenue of the hotel ?
What is the rent per room when the revenue is maximized?
What is the maximum revenue?
1 answer
1 answer