A Company Owns an Apartment Building Containing 100 Units

question 30

Short Answer

A company owns an apartment building containing 100 units.If the company charges $400 per month rent,then all units can be rented out,and for every increase of $20 per month in rent,the company will lose one customer.What rent should be charged to maximize revenue?

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Definitions:

Purchases

Purchases refer to the action of obtaining goods or services in exchange for money, marking a basic economic transaction between buyers and sellers.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.

Total Taxes

The cumulative amount of taxes owed by an individual or corporation to the government, including federal, state, and local taxes.

Taxable Income

The amount of income that is used to calculate an individual's or a company's income tax due.