How do I optimize profit for this word problem? MATH?

Posted on 2013-11-18 19:16:00 in Math by ROBERT

This is the question:

A restaurant has a seating area that can seat up to 25 tables with 4 people per table. If they only put in 15 tables then they can charge on average $20 per meal and fill the restaurant. However, for each additional table they put in they must decrease the price of the average meal by $1. assuming all the tables are full, what number of tables will maximize their profit.



I know that revenue - costs = profit.

I calculated the revenue as

(p-20) / (q-15) = (-1/1)

p-20 = -q+15

p = -q + 35q

P x Q = Revenue

(-q+35q)q = -q^2+35q --> REVENUE



However, I am having trouble identifying the cost equation from the problem.

Thanks!

---

Answer Comment

No Answers Posted Yet.