Question

Rent-A-Reck Incorporated finds that it can rent 60 cars if it charges $40 for a weekend. It estimates that for each $5 price increase it will rent two fewer cars. What price should it charge to maximize its revenue

Answer 1

Answer: $38

Explanation:

Based on the scenario in the question, the equation for the total revenue will be:

= (60 - 2n)(40 + 5n).

It should be noted that the coefficient of increment is represented by n.

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