Revenue Maximization - StudentOfFortune.com

Question

Asked by:

Rating : No Rating
Questions Asked: 4
Tutorials Posted: 0

$1.00 Revenue Maximization

From Mathematics: Calculus
Closed, but you can still post tutorials
Due on May. 05, 2008
Asked on May 02, 2008 at 8:25:00PM

Q:
Jim decides to buy an apartment complex with 80 apartments, and he is trying to decide on the rent to charge. He finds out through research and experience that at a rent of $200 per month, all of the units will be full. However, for every $10 increase in rent, one additional apartment will be vacant. At what price should Jim use to maximize revenue?

Attachments:

Available Tutorials to this Question

Posted by:

sudipta

Rating (2463): A
Questions Asked: 0
Tutorials Posted: 15335, earned $72,367.32

$3.00 Answered

This tutorial hasn't been purchased yet.
Posted on May 02, 2008 at 9:32:41PM

A:
Preview: ... is a maximum or a minimum, we apply the following rule of thumb:<br>If d2R/dN2 < 0, then the function has a maximum.<br>If d2R/dN2 > 0, then the functi ...

The full tutorial is about 135 words long .

Posted by:

imhotep09
Rating (3): A-
Questions Asked: 0
Tutorials Posted: 12, earned $86.07

$5.00 Revenue Maximization Solution

This tutorial hasn't been purchased yet.
Posted on May 05, 2008 at 9:39:45PM

A:
Preview: ... nd curve is determined to be P = 1,000 - 10Q. This yields a total revenue curve of TR = 1,000Q - 10Q2 . Taking the derivative of the TR curve with respect to quantity yields the marginal revenue curve: MR = 1,000 - 20Q. The maximum (or minimum) is determined by setting the MR to zero and solving fo ...

The full tutorial is about 268 words long .