2. A property agent handles an office building with 50 identical offices for rental. Experience shows that if the rent for each office is $800 per month then all of the offices will be occupied, but on average one office will become vacant for each $20 that the rent is increased above $800 per month. Suppose that the monthly cost of maintaining each occupied office is $80 and for an unoccupied office it is $25. What monthly rent should be charged so as to maximise the profit? Using the derivative, find the maximum profit and the number of offices occupied when the profit is maximsed. Assume that only rent increases in multiples of $20 are used. (Hint: Let x be the number of rent increases of $20 and find expressions for revenue and costs in terms of

2. A property agent handles an office building with 50 identical offices for rental. Experience shows that if the rent for each office is $800 per month then all of the offices will be occupied, but on average one office will become vacant for each $20 that the rent is increased above $800 per month. Suppose that the monthly cost of maintaining each occupied office is $80 and for an unoccupied office it is $25. What monthly rent should be charged so as to maximise the profit? Using the derivative, find the maximum profit and the number of offices occupied when the profit is maximsed. Assume that only rent increases in multiples of $20 are used. (Hint: Let x be the number of rent increases of $20 and find expressions for revenue and costs in terms of

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Description: 2. A property agent handles an office building with 50 identical officesfor rental. Experience shows that if the rent for each office is $800per month then all of the offices will be occupied, but on average oneoffice will become vacant for each $20

Calculus: Early Transcendentals

8th Edition

ISBN:9781285741550

Author:James Stewart

Publisher:James Stewart

Chapter1: Functions And Models

Section: Chapter Questions

Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...

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2. A property agent handles an office building with 50 identical offices
for rental. Experience shows that if the rent for each office is $800
per month then all of the offices will be occupied, but on average one
office will become vacant for each $20 that the rent is increased above
$800 per month. Suppose that the monthly cost of maintaining each
occupied office is $80 and for an unoccupied office it is $25. What
monthly rent should be charged so as to maximise the profit? Using
the derivative, find the maximum profit and the number of offices
occupied when the profit is maximsed. Assume that only rent increases
in multiples of $20 are used. (Hint: Let x be the number of rent
increases of $20 and find expressions for revenue and costs in terms of

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