Got Homework?
Connect with other students for help. It's a free community.
Here's the question you clicked on:
 0 viewing
can you answer this?
Filinvest realty handles a condominium of 100 units. Their experience shows that if the rent for each unit is P10,000/month all of the units will be occupied, but 10 units will become vacant for each P1,000 increase in monthly rate. what rate should be charged to maximize the total revenue? use second derivative test.
 2 years ago
 2 years ago
can you answer this? Filinvest realty handles a condominium of 100 units. Their experience shows that if the rent for each unit is P10,000/month all of the units will be occupied, but 10 units will become vacant for each P1,000 increase in monthly rate. what rate should be charged to maximize the total revenue? use second derivative test.
 2 years ago
 2 years ago

This Question is Closed

14yamakaBest ResponseYou've already chosen the best response.0
I think the equation looks like this: f(x)=(10000+1000x)(10010x) x= the number of increases in 1000's
 2 years ago

14yamakaBest ResponseYou've already chosen the best response.0
But...the answer that comes out with this is really weird So, if this is multiplied out, we get 1,000,000100,000x+100,000x10000x^2 =1,000,00010000x^2 Then, taking the first derivative, dy/dx=20000x d^2y/dx^2=20,000
 2 years ago

vishal_kothariBest ResponseYou've already chosen the best response.6
it is tough..give me some time...
 2 years ago

14yamakaBest ResponseYou've already chosen the best response.0
ahh....helping out on this question i think?
 2 years ago

shaan_iitkBest ResponseYou've already chosen the best response.2
@14yamaka .. actually it makes sense that in order to maximize your revenue you would not increase the cost per unit .. why ?? because each unit is giving you 10000 per month .. while an increase of even 1000 per unit would make you loose 10 units .. that is 10000*10 (minimum loss) which is way more than what you would gain by increasing the cost.. I think the question possibly is wrong or some value is given incorrectly...
 2 years ago

14yamakaBest ResponseYou've already chosen the best response.0
oh...yeah, I wondered if it wasnt already maximum, but it said to use the second derivative so i did...that's a good conclusion though :)
 2 years ago
See more questions >>>
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.