Alex runs a snowboard rental business that charges $12 per snowboard and averages 36 rentals per day. She discovers that for each $0.50 decrease in price, her business rents out two additional snowboards per day. At what price can Alex maximize her revenue?

Alex runs a snowboard rental business that charges $12 per snowboard and averages 36 rentals per day. She discovers that for each $0.50 decrease in price, her business rents out two additional snowboards per day. At what price can Alex maximize her revenue?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.6IP

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Alex runs a snowboard rental business that charges $12 per snowboard
and averages 36 rentals per day. She discovers that for each $0.50
decrease in price, her business rents out two additional snowboards
per day. At what price can Alex maximize her revenue?

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