Kuya Jay sells 650 cups of halo-halo per day at a price of 100 pesos each. A market surveys shows that for every 1 peso reduction in price, 20 more cups of halo-halo will be sold. How much should the man charge for a cup of halo-halo in order to maximize the revenue? What is the maximum revenue?

Kuya Jay sells 650 cups of halo-halo per day at a price of 100 pesos each. A market surveys shows that for every 1 peso reduction in price, 20 more cups of halo-halo will be sold. How much should the man charge for a cup of halo-halo in order to maximize the revenue? What is the maximum revenue?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 3.2CE

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Question

Kuya Jay sells 650 cups of halo-halo per day at a price of 100 pesos each.
A market surveys shows that for every 1 peso reduction in price, 20 more cups of halo-halo will be
sold. How much should the man charge for a cup of halo-halo in order to maximize the revenue?
What is the maximum revenue?

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