badge image

Enroll For Free Now & Improve Your Performance.

User Icon
User Icon
User Icon
User Icon
User Icon

Thank you for registering.

One of our academic counsellors will contact you within 1 working day.

Please check your email for login details.

Use Coupon: CART20 and get 20% off on all online Study Material

Total Price: Rs.

There are no items in this cart.
Continue Shopping
Grade: 12


A telephone company in a town has 500 subscribers on its list and collects fixed charges of Rs 300/- per subscriber per year. The company proposes to increase the annual subscription and it is believed that for every increase of Rs 1/- one subscriber will discontinue the service. Find what increase will bring maximum profit?

27 days ago

Answers : (1)

Anand Kumar Pandey
askIITians Faculty
1412 Points
							Dear Student

the company increases the annual subscription by Rs x.
So, x is the number of subscribers who discontinue the services.
Total revenue, R(x) = (500 - x) (300 + x)

= 150000 + 500x–300x–x2

= -x^2+ 200x + 150000
Differentiating both sides w.r.t. x,
R’(x) = -2x + 200

For local maxima and local minima,
R’(x) = 0 -2x + 200 = 0
⇒x = 100

R’’(x) = -2 < 0
Thus, R(x) is maximum at x = 100
Thus, in order to get maximum profit, the company should increase its annual subscription by Rs100

27 days ago
Think You Can Provide A Better Answer ?
Answer & Earn Cool Goodies

Course Features

  • 731 Video Lectures
  • Revision Notes
  • Previous Year Papers
  • Mind Map
  • Study Planner
  • NCERT Solutions
  • Discussion Forum
  • Test paper with Video Solution

Course Features

  • 51 Video Lectures
  • Revision Notes
  • Test paper with Video Solution
  • Mind Map
  • Study Planner
  • NCERT Solutions
  • Discussion Forum
  • Previous Year Exam Questions

Ask Experts

Have any Question? Ask Experts

Post Question

Answer ‘n’ Earn
Attractive Gift
To Win!!! Click Here for details