When a company prices its training seminar at $395 per person, 1,010 people will attend. For each $5 increase in price, there will be 10 fewer people attending. Determine which of the following functions, R(x), must be maximized, as well as on what interval, in order for the company to maximize its revenue (assuming it has a linear price-demand function, where x is the number of people attending the seminar).
When a company prices its training seminar at $395 per person, 1,010 people will attend. For each $5 increase in price, there will be 10 fewer people attending. Determine which of the following functions, R(x), must be maximized, as well as on what interval, in order for the company to maximize its revenue (assuming it has a linear price-demand function, where x is the number of people attending the seminar).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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When a company prices its training seminar at $395 per person, 1,010 people will attend. For each $5 increase in
price, there will be 10 fewer people attending. Determine which of the following functions, R(x), must be maximized,
as well as on what interval, in order for the company to maximize its revenue (assuming it has a linear price-demand
function, where x is the number of people attending the seminar).
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