Circuit City has been selling 70 television
sets a week at $540 each. A market survey
indicates that for each $30 rebate oﬀered to
a buyer, the number of sets sold will increase
by 5 per week.
How large a rebate should Circuit City oﬀer
a buyer in order to maximize its revenue?
1. none of these
2. rebate = $65
3. rebate = $60
4. rebate = $70
5. rebate = $80
6. rebate = $75

Question

Circuit City has been selling 70 television
sets a week at $540 each. A market survey
indicates that for each $30 rebate oﬀered to
a buyer, the number of sets sold will increase
by 5 per week.
How large a rebate should Circuit City oﬀer
a buyer in order to maximize its revenue?
1. none of these
2. rebate = $65
3. rebate = $60
4. rebate = $70
5. rebate = $80
6. rebate = $75