The marketing department of a local shoe company found that approximately 550 pairs of running shoes are sold monthly when the price of each pair is $100. It was also observed that, for each $1 reduction in price, an additional 20 pairs of running shoes are sold monthly. What price should the shoe store charge for a pair of running shoes in order to maximize revenue?

The price that maximizes the revenue is $63.75

Step-by-step explanation:

Analyzing the statement one after the other.

 ---- When -----

When there's a reduction of $1, we have:

and

Where x represents the maximum reduction

At this point, we need to calculate the revenue (R)

Open Brackets

Differentiate both sides with respect to x

To maximize revenue;

So:

Solve for x

Recall that:

Substitute

Hence:

The price that maximizes the revenue is $63.75

ok

step-by-step explanation:

i saw this question before, dont know the asnwer srry

step-by-step explanation: