SOLUTION: A bus company carries about 20,000 riders for a fare of 90 cents. A survey indicates that if the fare is decreased by 5 cents, the number of riders will increase by 2,000. What pri

Question 1125541: A bus company carries about 20,000 riders for a fare of 90 cents. A survey indicates that if the fare is decreased by 5 cents, the number of riders will increase by 2,000. What price would result to the greatest revenue?
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
Let = the total revenue
Let = the number of 5 cent increases in fare

The 2nd term peaks at

The fare/rider that maximizes revenue is

70 cents/rider
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Here�s a plot of r/10K and n:

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