posted by Irina
The Hotel Regal has 600 rooms. Currently the hotel is filled . The daily rental is $ 250 per room.
For every $ 4 increase in rent the demand for rooms decreases by 4 rooms.
Let x = the number of $ 4 increases that can be made.
What should x be so as to maximize the revenue of the hotel ?
What is the rent per room when the revenue is maximized? $
What is the maximum revenue? $
r(x) = (600-4x)(250+4x)
Now plug and chug.