What rent should lg charge to maximize profit

Reference no: EM13966869

An apartment block has seventy units of accommodation. It is estimated that it is possible to let them all if the rent is $2,000 per month, and for each $100 per month the rent is increased there would be one unit vacant.

LG, the manager of the block, finds that a vacant unit costs $100 per month to maintain whereas an occupied one costs $300.

a. If profit from the lettings is measured as revenue minus maintenance costs, find an expression for profit in terms of the number of units let.

b. What rent should LG charge to maximize profit?

Reference no: EM13966869

Questions Cloud

Compensation to make up for the hours : Is Sanchez Printers proceeding legally by requiring its employees to work extra hours without compensation to make up for the hours lost on the Friday holiday? Explain.

About the sport utility vehicle : A. Mr. Maloy has just bought a new $40,000 sport utility vehicle. Given his health conditions, he believes that there is about a 15% chance of being in an accident (that he caused) in the forthcoming year.

How does the market guide the decisions : Consider a farm in the former Soviet Union. Try to describe how decisions on the number of chickens to be raised, and the amount of each feed to use in raising them, were made under the old communist regime. If the farm is now privately owned, how..

Calculate banta overtime pay : Can the company pay Banta at a lower pay rate for the hours he worked as an operator? These extra hours also pushed Banta's work time over 40 hours. How should the company calculate Banta's overtime pay?

What rent should lg charge to maximize profit : An apartment block has seventy units of accommodation. It is estimated that it is possible to let them all if the rent is $2,000 per month, and for each $100 per month the rent is increased there would be one unit vacant. If profit from the lettin..

Write a short summary of the movie double jeopardy : Write a short summary of your findings. Either watch the 1999 Paramount Pictures movie thriller Double Jeopardy, or read a full plot summary of the movie online.

Determining the probable cause of difference : What was the probable cause of this difference? If this was not the cause, what should he do to find the error? - Objective: to find cause of balance sheet columns not in balance

Improving the patient experience : Summary of the case, short as to your understanding Issues of the case as relevant to Operations Management Analysis, your opinions from experience, and learning in other classes and your Bachelors classes Recommendations What should the co. do?

Quintessential firm that operates on human capital : Bill Gates has said that Microsoft is the quintessential firm that operates on “human capital.” He once said that if someone developed a better operational system, Microsoft would be ‘out of business in 90 days.’

User Account

All Pages