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zzz [600]
3 years ago
5

Getthere airlines currently charges $200$ dollars per ticket and sells $40{,}000$ tickets a week. for every $10$ dollars they in

crease the ticket price, they sell $1000$ fewer tickets a week. how many dollars should they charge to maximize their total revenue?
Business
1 answer:
Nataly_w [17]3 years ago
6 0
Suppose GetThere Airlines increases their ticket price to $200+10n = 10(20+n)$ dollars. Then the number of tickets they sell is $40,000-1000n = 1000(40-n)$ .<span> Therefore, their total revenue is
</span>
$$10(20+n)\cdot 1000(40-n) = 10000(20+n)(40-n) = 10000(800+20n-n^2).$$

This is maximized when $n=-\left(\frac{20}{2\cdot(-1)}\right)=10$ .<span> Therefore, they should charge </span><span>$200+10\cdot 10 = \boxed{300}$</span><span> dollars per ticket.</span>
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