Question 158·Medium·Nonlinear Functions
The monthly profit, , in thousands of dollars, that a digital magazine earns from subscriptions can be modeled by
where is the subscription fee, in dollars, charged to each customer. According to the model, what subscription fee maximizes the magazine’s monthly profit?
When a profit or revenue is modeled by a quadratic in the form and you are asked for the input that maximizes it, immediately check the sign of . If , the parabola opens downward and the maximum occurs at the vertex, whose -coordinate is . Identify and , plug them carefully into this formula (watching the negative signs), simplify, and then match that value to the closest answer choice instead of testing every option by hand.
Hints
Identify the shape of the graph
Look at the coefficient of in . Is the parabola opening upward or downward, and does that give you a minimum or a maximum?
Connect maximum profit to the vertex
For a quadratic profit function, the maximum profit occurs at the vertex of the parabola. What formula gives you the -coordinate of the vertex for ?
Substitute correctly into the vertex formula
Once you recall that the vertex is at , identify and from and be careful with the negative signs when you substitute.
Desmos Guide
Graph the profit function
In Desmos, type y = -0.2x^2 + 3.2x - 7 to graph the profit function, where represents the subscription fee.
Find the maximum point (vertex)
Tap or click on the highest point of the parabola; Desmos will label the vertex. The -coordinate of this vertex is the subscription fee that maximizes the profit. Compare that -value to the answer choices.
Optionally compare profits at the choices
Define the function as f(x) = -0.2x^2 + 3.2x - 7, then enter f(4), f(8), f(12), and f(16) in separate lines. The largest output among these corresponds to the correct subscription fee.
Step-by-step Explanation
Recognize the type of function and what is being asked
The profit is modeled by a quadratic function of :
Because the coefficient of is negative (), the graph is a parabola that opens downward, so it has a maximum point at its vertex. The question is asking for the -value (the subscription fee) at that maximum point.
Identify the quadratic coefficients
Compare the function to the standard form :
We will use and to find the -coordinate of the vertex.
Use the vertex formula for a quadratic
For a quadratic function , the -coordinate (here, the -coordinate) of the vertex is given by
Substitute and :
This expression gives the subscription fee at which the profit is maximized; we just need to simplify it.
Simplify to find the maximizing subscription fee
Now simplify the fraction:
So the subscription fee that maximizes the magazine's monthly profit is dollars, which corresponds to answer choice B) 8.