Question

Marginal Revenue for an Apartment Complex

Lynbrook West, an apartment complex, has 100 two-bedroom units. The monthly profit (in dollars) realized from renting x apartments is represented by the following function.

P(x) = -9x² + 1520x - 52000

(a)

What is the actual profit realized from renting the 41st unit, assuming that 40 units have already been rented?

$

(b)

Compute the marginal profit when x = 40 and compare your results with that obtained in part (a).

$

Answer 1

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