Last month, an airline made 2,905 reservations for flights from Cleveland, Ohio to Newark, New Jersey. After 25 cancellations, t
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Answer:
Step-by-step explanation:
Given data
Total units = 250
Current occupants = 223
Rent per unit = 892 slips of Gold-Pressed latinum
Current rent = 892 x 223 =198,916 slips of Gold-Pressed latinum
After increase in the rent, then the rent function becomes
Let us conside 'y' is increased in amount of rent
Then occupants left will be [223 - y]
Rent = [892 + 2y][223 - y] = R[y]
To maximize rent =
Since 'y' comes in negative, the owner must decrease his rent to maximixe profit.
Since there are only 250 units available;
Optimal rent - 838 slips of Gold-Pressed latinum