Aspire Faculty ID #17280 · Topic: CUET UG 2022 Applied Mathematics · Just now
CUET UG 2022 Applied Mathematics

A cable network provider in a small town has $500$ subscribers and he used to collect Rs. $300$ per month from each subscriber. He proposes to increase the monthly charges and it is believed that for every increase of Rs. $1$, one subscriber will discontinue the service. The number of subscribers which gives the maximum revenue is:

Solution

From previous question,

Revenue:

$R=(300+x)(500-x)$

Expand:

$R=150000+200x-x^2$

This is a quadratic function:

$R=-x^2+200x+150000$

Maximum occurs at

$x=\frac{-b}{2a}$

Here,

$a=-1,; b=200$

$x=\frac{-200}{2(-1)}$

$x=100$

So number of subscribers:

$500-x=500-100=400$

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