2. A property agent handles an office building with 50 identical offices for rental. Experience shows that if the rent for each office is $800 per month then all of the offices will be occupied, but on average one office will become vacant for each $20 that the rent is increased above $800 per month. Suppose that the monthly cost of maintaining each occupied office is $80 and for an unoccupied office it is $25. What monthly rent should be charged so as to maximise the profit? Using the derivative, find the maximum profit and the number of offices occupied when the profit is maximsed. Assume that only rent increases in multiples of $20 are used. (Hint: Let x be the number of rent increases of $20 and find expressions for revenue and costs in terms of

2. A property agent handles an office building with 50 identical offices for rental. Experience shows that if the rent for each office is $800 per month then all of the offices will be occupied, but on average one office will become vacant for each $20 that the rent is increased above $800 per month. Suppose that the monthly cost of maintaining each occupied office is $80 and for an unoccupied office it is $25. What monthly rent should be charged so as to maximise the profit? Using the derivative, find the maximum profit and the number of offices occupied when the profit is maximsed. Assume that only rent increases in multiples of $20 are used. (Hint: Let x be the number of rent increases of $20 and find expressions for revenue and costs in terms of

Name: 2. A property agent handles an office building with 50 identical offi
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Description: 2. A property agent handles an office building with 50 identical officesfor rental. Experience shows that if the rent for each office is $800per month then all of the offices will be occupied, but on average oneoffice will become vacant for each $20

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter2: Systems Of Linear Equations

Section2.4: Applications

Problem 27EQ

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