<u>ANSWER</u>
The subscription price of $45 provides the maximum revenue for the company
<u>EXPLANATION</u>
When the price is $
, the company sells
quantities.
The total revenue accrued
![=40\times2000](https://tex.z-dn.net/?f=%3D40%5Ctimes2000)
![=$80,000](https://tex.z-dn.net/?f=%3D%2480%2C000)
When the price increases to $
the quantity sold will decrease by 200 magazines which is ![2000-200=1800](https://tex.z-dn.net/?f=2000-200%3D1800)
The total revenue accrued
![=45\times 1800](https://tex.z-dn.net/?f=%3D45%5Ctimes%201800)
dollars
When the price increases to $
the quantity sold will decrease by 200 magazines again which is ![1800-200=1600](https://tex.z-dn.net/?f=1800-200%3D1600)
The total revenue accrued
![=50\times 1600](https://tex.z-dn.net/?f=%3D50%5Ctimes%201600)
dollars
When the price increases to $
the quantity sold will decrease by 200 magazines which is ![1600-200=1400](https://tex.z-dn.net/?f=1600-200%3D1400)
The total revenue accrued
![=55\times 1400](https://tex.z-dn.net/?f=%3D55%5Ctimes%201400)
dollars
Hence a subscription price of $45 provides the maximum revenue for the company.