Posted by jean on Wednesday, February 6, 2008 at 7:47pm.
As manager of Citywide Racquet Club, you must determine the best price to charge for locker rentals. Assume that the (marginal) cost of providing lockers is 0. The monthly demand for lockers is estimated to be Q = 100  2P where P is the monthly rental price and Q is the number of lockers rented per month. What price would you charge? How many lockers are rented monthly at this price? Explain why you chose this price.

managerial econ  Damon, Wednesday, February 6, 2008 at 8:19pm
You want to maximize income which is P*Q
P Q = 100 P  2 P ^2
2 p^2 100 p =  income
where is that derivative = 0?
4 p  100
p = 25 seems to be it.
then you rent
Q = 100  50 = 50 of them
and you make
PQ = $1250
If you have not had calculus, find the vertex of that parabola by completing the square
Answer This Question
Related Questions
 Math  Imagine there are 100 lockers. Each locker is given a number 1100. When ...
 math  the 20 students in Mr. Wolf's 4th grade class are playing a game in a ...
 Math 6th  Imagine there are 1000 lockers and 1000 students at school. The 1st ...
 Algrebra  A new high school has just been opened, with an enrollment of 1000 ...
 Math  Reasoning Word Problem: A school's lockers are numbered 1100. One ...
 Math  A new school has exactly 1,000 lockers and 1,000 students. the student ...
 Math  There are 10,000 lockers. One person opens all the lockers. The second ...
 Math  There are 10,000 lockers. One person opens all the lockers. The second ...
 math  A set of 100 open lockers are numbered from 1  100. Sarah comes by and ...
 Math Word Problem(PLEASE HELP NOW)  Reasoning Word Problem: A school's lockers ...
More Related Questions