Question

On a certain route, an airline carries 6000 passengers per month, each paying $120. A market survey indicates that for each $1 decrease in ticket price, the airline will gain 50 passengers. Find the ticket price that will maximize the airline's monthly revenue for the route. What is the maximum revenue? How many passengers will maximize the revenue?

Answer 1

There is no local maximum with 6000 passengers being increased in increments of 50. The revenue decreases with each 50 passenger increment.