The city transit system carries 24800 bus riders per day for a fare of $1.85. The city hopes to reduce car pollution by getting more people to ride the bus, while maximizing the transit's revenue at the same time. A survey shows that the number of riders will increase by 800 for every $0.05 decrease in fare. What fare will produce the greatest revenue?
Can anyone help me with the steps to answering this question about completing the squares?
let x = # of fare decreases of .05
let R = Revenue
R = (1.85 -.05x)(24800+800x)
R = 44880 +1480x-1240x -40xsquared)
dR/dx = 240 - 80x
Max when dR/dx = 0
Thus 0 = 240 - 80x
x = 3
New fare = $1.70
Rocco
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment