Question

g A car rental agency rents 180 cars per day at a rate of 30 dollars per day. For each 1 dollar increase in the daily rate, 5 fewer cars are rented. At what rate should the cars be rented to produce the maximum income, and what is the maximum income

Answer 1

$33 per day

$5,445

Explanation:

(30+x)(180-5x) = Income

Income = -5x² + 180x - 150x + 5400

I = -5x² + 30x + 5400

dI/dx = -10x + 30 = 0

x = 3

Rate: 30+3 = 33

Income = 33(180 - (5×3)) = 5445