Question

A motel owner observes that when a room is priced at $120 per day, all 200...

A motel owner observes that when a room is priced at $120 per day, all 200 rooms of the motel are occupied. For every $10 rise in the charge per room per day, 5 rooms are vacant. Each occupied room costs an additional $38 per day to maintain.
(a) Find the profit function.
(b) Find the price of per room per day the motel should charge in order to maximize its
profit.
(c) How many room is occupied to have the maximum profit? (d) What would be the maximum profit of the motel?

Homework Answers

Answer #1

ANSWER:-

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A hotel has 260 units. All rooms are occupied when the hotel charges $80 per day...
A hotel has 260 units. All rooms are occupied when the hotel charges $80 per day for a room. For every increase of x dollars in the daily room rate, there are x rooms vacant. Each occupied room costs $28 per day to service and maintain. What should the hotel charge per day in order to maximize daily profit?
A 400 room hotel can rent every one of its rooms at $70 per room. For...
A 400 room hotel can rent every one of its rooms at $70 per room. For each $1 increase in rent, 5 fewer rooms are rented. Each rented room costs the hotel $10 to service per day. How much should the hotel charge for each room to maximize its daily profit? What is the maximum daily profit?
A 400​-room hotel can rent every one of its rooms at $100 per room. For each​...
A 400​-room hotel can rent every one of its rooms at $100 per room. For each​ $2 increase in​ rent, 4 fewer rooms are rented. Each rented room costs the hotel​ $12 to service per day. How much should the hotel charge for each room to maximize its daily​ profit? What is the maximum daily​ profit?
600​-room hotel can rent every one of its rooms at ​$80 per room. For each​ $1...
600​-room hotel can rent every one of its rooms at ​$80 per room. For each​ $1 increase in​ rent, 6 fewer rooms are rented. Each rented room costs the hotel​ $10 to service per day. How much should the hotel charge for each room to maximize its daily​ profit? What is the maximum daily​ profit?
1. A 600-room hotel in Las Vegas is filled to capacity every night at a price...
1. A 600-room hotel in Las Vegas is filled to capacity every night at a price of $106 per room. For each $1 increase in the room price, 3 fewer rooms are rented. If each rented room costs $10 to service per day, how much should the management charge for each room to maximize the total profit? 2. Find the absolute maximum and absolute minimum values (if they exist) of f(x) = ln x/ x on the interval (0, ∞)....
An orange grove produces a profit of $96 per tree when there are 1200 trees planted....
An orange grove produces a profit of $96 per tree when there are 1200 trees planted. Because of​ overcrowding, the profit per tree​ (for every tree in the​ grove) is reduced by 4 cents per tree for each one additional tree planted. How many trees should be planted in order to maximize the total profit of the orange​ grove? What is the maximum​ profit?
1. t To get full credit for this question make sure you verify that your answer...
1. t To get full credit for this question make sure you verify that your answer is indeed the absolute maximum. Country Motorbikes Incorporated finds that it costs $200 to produce each motorbike, and that fixed costs are $1500 per day. The price function is p(x) = 600 − 5x, where p is the price (in dollars) at which exactly x motorbikes will be sold. Find the quantity Country Motorbikes should produce and the price it should charge to maximize...
At Otto’s egg farm, Otto has found that when he charges $0.05 per egg he sells...
At Otto’s egg farm, Otto has found that when he charges $0.05 per egg he sells so many eggs that he cannot keep up with demand and has zero profit. When he charges $0.17 per egg he sells so few eggs that he has to throw some out and is also left with zero profit. Currently he charges $0.15 per egg and has a profit of $124 per day. Let P left parenthesis c right parenthesis be his profit in...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market equilibrium price is $120. Jojo’s Tax Service has a daily, short-run total cost given by TC = 100 + 4Q2. Answer the following questions: How many tax returns should Jojo prepare each day if her goal is to maximize profits? How much will she earn in profit each day? A perfectly competitive...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market equilibrium price is $120. Jojo’s Tax Service has a daily, short-run total cost given by TC = 100 + 4Q2. Answer the following questions: How many tax returns should Jojo prepare each day if her goal is to maximize profits? How much will she earn in profit each day? A perfectly competitive...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT