Question

Metre

Answer 1

Answer:

$17.5

Step-by-step explanation:

The operator, for a round-trip fare of $20, carries an average of 500 people per day.

It is estimated that 20 fewer people will take the trip, for each $1 increase in fare.

Therefore, for $x dollars increase in fare, 20x less people will take the trip and at that time the total fare F is given by  

F(x) =(20 + x)(500 - 20x) = 10000 + 100x - 20x²

For F(x) to be maximum, the condition is $\frac{dF(x)}{dx} = 0$

Hence, 100 - 40x = 0

⇒ x = 2.5  

Therefore, the fare of $(20 - 2.5) = $17.5 will maximize the total fare. (Answer)