Alex runs a snowboard rental business that charges $12 per snowboard and averages 36 rentals per day. She discovers that for each $0.50 decrease in price, her business rents out two additional snowboards per day. At what price can Alex maximize her revenue?

Alex runs a snowboard rental business that charges $12 per snowboard and averages 36 rentals per day. She discovers that for each $0.50 decrease in price, her business rents out two additional snowboards per day. At what price can Alex maximize her revenue?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Alex runs a snowboard rental business that charges $12 per snowboard
and averages 36 rentals per day. She discovers that for each $0.50
decrease in price, her business rents out two additional snowboards
per day. At what price can Alex maximize her revenue?

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