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Quadratic Equation : Maximizing Profit

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A movie theatre sells tickets for $8.50 each. The manager is considering raising the prices but knows that for every 50 cent the price is raised, 20 fewer people go to the movies. The equation is R= -40c to the power (exponent) of 2 + 84c describes the relationship between the cost of the tickets, c dollars, and the amount of revenue, R dollars, that the theatre makes. What price should the theatre charge to maximize revenue?

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Solution Summary

Profit is maximized by finding the vertex of a quadratic function is determined.

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A movie theatre sells tickets for $8.50 each. The manager is considering raising the prices but knows that for every 50 cent the ...

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