movie theatre sells tickets for $8.50 each. The manager is considering raising the prices but knows for every 50 cents the price is raised, 20 fewer people go to the movies. The equation R=-40c^2+84c describes the relationship between the cost of tickets, c dollars and the amount of revenue, R dollars, that the theatre makes. What price should the theatre charge to maximize revenue?
This question has me really stumped and I don't know quite where to begin any help would be greatly appreciated.
2006-10-30 08:07:56 · 1 answers · asked by brent c 1 in Education & Reference ➔ Homework Help
R=-40c^2+84c
To find the maximum revenue, find the point where the change in revenue = 0.
In this case, set -40c^2 = 84c (the point where the negative and positive portion of the equation balance each other out.
-40c^2 = 84c
-40c^2 / c = 84c / c
-40c / -40 = 84 / -40
c = 84 / -40 = 21 / 10 = 2.1 = $2.10
This sounds suspiciously like you're missing a part of the formula.
If, for example, the equation had been: R = -40c^2 + 84c + 1000, then you can still use the same method: set the first two terms equal to each other (since 1000 is a constant, and won't change).
2006-10-31 00:21:49 · answer #1 · answered by ³√carthagebrujah 6 · 0⤊ 0⤋