A few days ago
No Name Provided

Calculus homework help!?

Pack-Em-In Real Estate has a development in the works. If it builds 50 houses in this development, it will be able to sell them at $190,000 each, but if it builds 70 houses, it will get only $170,000 each. Obtain a linear demand equation, and hence determine how many houses it should build to get the largest revenue. What is the largest possible revenue?

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A few days ago
Anonymous

Favorite Answer

You have two points: (50, 190000) and (70, 170000). If you’re in calculus, I must assume you can determine the line between them. Let’s call it f(x). Your revenue, then, is number of houses sold times the price for each house – in other words, xf(x). Find that, and then look for critical points. If you find a local maximum between 50 and 70, there’s your maximum revenue point. If you don’t, it’ll be one of the endpoints.
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A few days ago
lindsey m
57,000,.870,854,001
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