In a 100-unit apartment building when the price charged per apartment rental is (820 + 40x) dollars, the number of apartments rented is 100- x and the total revenue for the building is R(x) = (820 + 40x) (100-x), where x is the number of $40 rent increases (and the resulting number of unrented apartments). Find the marginal revenue (in dollars) when x = 10. $ Does this tell you that the rent should be raised (causing more vacancies) or lowered? Explain. The rent should not be raised. An 11th rent increase would increase ✓revenue.

College Algebra
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Author:James Stewart, Lothar Redlin, Saleem Watson
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Chapter2: Functions
Section2.4: Average Rate Of Change Of A Function
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raised/not raised and increase/decrease

In a 100-unit apartment building when the price charged per apartment rental is (820 + 40x) dollars, the number of apartments rented is 100 - x and the total revenue for the building is
R(x) = (820 + 40x)(100 - x),
where x is the number of $40 rent increases (and the resulting number of unrented apartments). Find the marginal revenue (in dollars) when x = 10.
$
Does this tell you that the rent should be raised (causing more vacancies) or lowered? Explain.
The rent should not be raised. An 11th rent increase would increase ✓ revenue.
Transcribed Image Text:In a 100-unit apartment building when the price charged per apartment rental is (820 + 40x) dollars, the number of apartments rented is 100 - x and the total revenue for the building is R(x) = (820 + 40x)(100 - x), where x is the number of $40 rent increases (and the resulting number of unrented apartments). Find the marginal revenue (in dollars) when x = 10. $ Does this tell you that the rent should be raised (causing more vacancies) or lowered? Explain. The rent should not be raised. An 11th rent increase would increase ✓ revenue.
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