SOLUTION: The manager of a large apartment complex knows from experience that 120 units will be occupied if the rent is 368 dollars per month. A market survey suggests that, on the average,
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Question 534954: The manager of a large apartment complex knows from experience that 120 units will be occupied if the rent is 368 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 4 dollar increase in rent. Similarly, one additional unit will be occupied for each 4 dollar decrease in rent. What rent should the manager charge to maximize revenue? Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website! Let = number of $4 in rent ( up or down )
Let = manager's revenue
For increase in rent:
and, for decrease in rent:
----------------------------
For rent increase,
----------------
For rent decrease,
----------------
The manager should either increase the rent by dollars, or he should decrease
the rent by dollars
either a rent of $424 or $312 will maximize revenue
