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26. A local newspaper currently has 84,000 subscribers at a quarterly charge of $30. Market research has suggested that if the owners raise the price
26. A local newspaper currently has 84,000 subscribers at a quarterly charge of $30. Market research has suggested that if the owners raise the price to $32, they would lose 5,000 subscribers. Assuming that subscriptions are linearly related to the price, what price should the newspaper charge for a quarterly subscription to maximize their revenue? a) Find the cost function (Hint: find slope and use point-slope form to find the cost function) [4] b) Find the revenue function [2] c) Find the maximum revenue [3] d) Find the profit function [1]
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