Acompany can sell 2000 magazine subscriptions at $40 each. for each $5 increase in the price, it will sell 200 fewer subscriptions.
what subscription price will provide the maximum revenue for the company?

a) $55 b) $40 c) $45 d) $50

$45 is the price that provide the maximum revenue

Step-by-step explanation:

Let x be the number of times the price increase

A company can sell 2000 magazine subscriptions , for each price increase they sell 200 few subscriptions. (2000-200x) for x  times increase.

for each $5 increase, the cost becomes 40+5

For x times increase the cost becomes 40+5x

Revenue is cost time the number of magazines

a=-1  and b = 2

To get maximum revenue find out the vertex

price is 40+5x= 40+5(1)= 45

so $45 is the price that provide the maximum revenue

a ≈ 172.05

step-by-step explanation:

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