On a certain route an airline carries 7000 passengers per mo
On a certain route, an airline carries 7000 passengers per month, each paying $30. a market survey indicates that for each $1 increase in the ticket price, the airline will lose 50 passengers. Find the ticket price that will maximize the airlines monthly revenue for the route in $? What is the maximum monthly revenue in $??
Solution
(7000 - 50x)(30+x) = Revencue To maximize 7000 - 50x - 50 (30+x) = 0 x = 55 Revenue = (7000 - 55*50) (30+55) = 361250