The manager of a large apartment complex knows from experience that 110 units will be occupied if the rent is 360 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 10 dollar increase in rent. Similarly, one additional unit will be occupied for each 10 dollar decrease in rent. (a) If æ is the number of units rented, and p is the rent per unit in dollars, what is the price-demand equation (assuming it is linear)? p = (b) What is the monthly revenue function for the manager? (Hint: Revenue is the product of the price per item and the number of items.) R(x) = (c) How many apartment units should be rented to maximize the monthly revenue? apartment units

The manager of a large apartment complex knows from experience that 110 units will be occupied if the rent is 360 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 10 dollar increase in rent. Similarly, one additional unit will be occupied for each 10 dollar decrease in rent. (a) If æ is the number of units rented, and p is the rent per unit in dollars, what is the price-demand equation (assuming it is linear)? p = (b) What is the monthly revenue function for the manager? (Hint: Revenue is the product of the price per item and the number of items.) R(x) = (c) How many apartment units should be rented to maximize the monthly revenue? apartment units

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter8: Time Series Analysis And_forecasting

Section: Chapter Questions

Problem 13P: The values of Alabama building contracts (in millions of dollars) for a 12-month period are as...

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Previous Problem Problem List Next Problem The manager of a large apartment complex knows from experience that 110 units will be occupied if the rent is 400 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 1 dollar increase in rent. Similarly, one additional unit will be occupled for each 1 dollar decrease in rent. What rent should the manager charge to maximize revenue?
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