Question

The manager of a 100 unit apartment complex knows from experience that all units will be occupied if the rent is $600 per month. A market survey suggests that, on average, one additional unit will remain vacant for each $10 increase in rent. What rent should the manager charge to maximize revenue?

Answer 1

Step-by-step explanation:

The manager should charge $800 per month. At this level, there would be 80 occupants and the total rent would be 64,000. This is the highest revenue level. At 810, profits start to decrease.