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A bike rental company charges its customers p dollars per day to rent a bike, where 5≤p≤30. the number of bikes rented per day can be modeled by the linear function n(p)=300−10p. how much should the company charge each customer per day to maximize revenue? do not include units or a dollar sign in your answer.

Answer :

Using the vertex of a quadratic equation, it is found that the company should charge each customer $15 per day to maximize revenue.

What is the vertex of a quadratic equation?

A quadratic equation is modeled by:

[tex]y = ax^2 + bx + c[/tex]

The vertex is given by:

[tex](x_v, y_v)[/tex]

In which:

  • [tex]x_v = -\frac{b}{2a}[/tex]
  • [tex]y_v = -\frac{b^2 - 4ac}{4a}[/tex]

Considering the coefficient a, we have that:

  • If a < 0, the vertex is a maximum point.
  • If a > 0, the vertex is a minimum point.

In this problem, the number of bikes rented per day is given by:

n(p) = 300 - 10p.

Hence, the revenue function is given by:

R(n) = p x n(p)

R(n) = 300p - 10p².

Which is a quadratic function with coefficients a = -10, b = 300. Hence, the price in dollars that will maximize the revenue is given by:

[tex]x_v = -\frac{300}{-20} = 15[/tex]

More can be learned about the vertex of a quadratic equation at https://brainly.com/question/24737967

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