Currently, cable rate = 19 and subscribers = 900. For each 0.25 reduction in rate, subscribers will increase by 50. Let us say the rate is reduced x times (each reduction = 0.25) So the reduced rate = 19 - 0.25*x For each reduction, subscribers go up by 50 So the new number of subscribers = 900 + 50*x New revenue =For the revenue to be maximum, the first derivative of the expression has to be 0, and the second derivative has to be negative. Revenue = First derivative = Solving for -25*x + 725 = 0, Second derivative = -25 which is negative, confirming that it is a max value. So, the cable rate for maximum revenue = At this rate, number of customers = Max revenue will be Hope you got it. :)