document.write( "Question 877125: Lily is currently selling ad space for $0.50 each post and she sells 100 spots a month. Once again, using her mathematical researching skills, she discovers that for every $0.02 increase in the price, she will lose 5 ad sales. At what price will Lilly be making the most money? At what price will she be making absolutely no money? \n" ); document.write( "
Algebra.Com's Answer #529228 by lwsshak3(11628)![]() ![]() ![]() You can put this solution on YOUR website! Lily is currently selling ad space for $0.50 each post and she sells 100 spots a month. Once again, using her mathematical researching skills, she discovers that for every $0.02 increase in the price, she will lose 5 ad sales. At what price will Lilly be making the most money? At what price will she be making absolutely no money? \n" ); document.write( "*** \n" ); document.write( "let x=number of $0.02 increases in the price \n" ); document.write( "revenue=price*quantity \n" ); document.write( "R=(.50+.02x)(100-5x) \n" ); document.write( "R=50-.50x-.10x^2 \n" ); document.write( "R=-.10x^2-.50x+50 \n" ); document.write( "complete the square: \n" ); document.write( "R=-.10(x^2+5x+6.25)+.625+50 \n" ); document.write( "R=-.10(x+2.5)^2+50.625 \n" ); document.write( "maximum revenue of $50.625 ocurs when x=-2.5 \n" ); document.write( "This is reducing the price=2.5*.02=.05 to $0.45 for each post \n" ); document.write( ".. \n" ); document.write( "For zero revenue: \n" ); document.write( "0=-.10x^2-.50x+50 \n" ); document.write( "(x+25)(x-20)=0 \n" ); document.write( "x=-25 or x=20 \n" ); document.write( "which results increases in price of -$0.50 or $0.40 \n" ); document.write( "which results in selling prices of $0 and $0.90 which produces 0 revenue \n" ); document.write( ".. \n" ); document.write( "At what price will Lilly be making the most money? $0.45 \n" ); document.write( "At what price will she be making absolutely no money? $0.90 \n" ); document.write( " |