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Allen Rent-A-TV derives an average profit of $15 per customer if it services 1000 customers or less. If it services over 1000 customers, the profit decrease per customer by $.01 for each customer over 1000. How many customers will give the maximum profit?

Respuesta :

Answer:

1000

Explanation:

1000, that is the point where it reaches maximum utility, if it has more clients it incurs a higher marginal cost and therefore its utility would be lower, in microeconomics the utility function is a quadratic function, this means that it has a maximum point and from there the income continues to increase but the utility decreases due to the marginal cost, that is to say the cost of an additional unit.

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