The rent that the manager should charge to maximize revenue will be $2,000.
In business, a rent is known as the cost incurred by a business to utilize a property or location for an office, retail space, factory, or storage space.
Initially, to find revenue by coming up we can calculate with an equation below:
Revenue = Price × Revenue
Where, price = 1000 + 20x
Quantity = 150 - x
R(x) = (1000+20x) (150-x)
R(x) = 150000 - 1000x + 3000x - 20x²
R(x) = - 20x² + 2000x + 150000
To maximize the revenue, we calculate the derivative and set it to zero:
R(x) = - 20x² + 2000x + 150000
R(x) = -40x + 2000
-40x + 2000 = 0
40x = 2000
x = 50
After we find the amount of X, thus we determine the rent that the manager should charge to maximize revenue
Price=$1000+20x
Price=$1000+20(50)
Price=$1,000 + 1,000
Price = $2,000
Learn more about the rent at brainly.com/question/2254034
#SPJ4
