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The baking store has begun selling a cookbook called "What Would Euler Eat?" If the price of the cookbook is n dollars (n \le 72), then it will sell 720 - 10n copies. What price (in dollars) will maximize the total revenue we receive for the books?

 Nov 1, 2014
 #1
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The profit is determined by the number of books sold times the price per book.

We want to graph points where the x-value represents the cost per book, n, and where the y-value represents the amount of money taken in.

When n = 0, the amount of money taken in will be 0; again, when n = 72, the amount of money will again be 0.

This graph will be a parabola.

As n increases from 0, to 1, to 2, etc., the amount of money taken in will increase until it hits a maximum at 36; after 36, the amount of money taken in will decrease.

Let y = amount of money taken in:  x = price per book:  y = x(720-10x)

y  = 720 - 10x²

Either graph this and find the maximum point , or find the vertex (the maximum point) by completing the square.

y = -10x² + 720x

y  =  -10(x² - 72x)

y - 12960  =  -(x² - 72x + 1296)        <--- complete the square.

y - 12960  =  -(x - 3)²

Vertex:  (36, 12960)

 Nov 1, 2014
 #2
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What would be the price?

 Nov 1, 2014
 #3
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x = price of the book; what is the value of x at the vertex?

 Nov 1, 2014

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