Maxima and Minima

At a price of $1.00, a dealer can sell 1000 articles that cost him 60 cents each.  For each cent that the lowers the price, he can increase the number sold by 50.  What price will maximize the profit?

Source: Rosenberg, R.L. (1984). Elementary Calculus: Course Notes. Ottawa, Canada: Holt, Rinehart and Winston. (Exercise 2: Question 14, p. 11)

Author: ascklee

Dr. Lee teaches at the Wee Kim Wee School of Communication and Information at the Nanyang Technological University in Singapore. He founded The Mathematics Digital Library in 2013.

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