Question 14 Marks
Read the following text carefully and answer the questions that follow:
Mrs. Maya is the owner of a high-rise residential society having $50$ apartments. When he set rent at $₹ 10000$ month, all apartments are rented. If he increases rent by $₹ 250 $ month, one fewer apartment is rented.
The maintenance cost for each occupied unit is $₹ 500$ month.

$i$. If $P$ is the rent price per apartment and $N$ is the number of rented apartments, then find the profit. $(1)$
$ii.$ If $x$ represents the number of apartments which are not rented, then express profit as a function of $x. (1)$
$iii.$ Find the number of apartments which are not rented so that profit is maximum. $(2)$
OR
Verify that profit is maximum at critical value of $x$ by second derivative test. $(2)$
Mrs. Maya is the owner of a high-rise residential society having $50$ apartments. When he set rent at $₹ 10000$ month, all apartments are rented. If he increases rent by $₹ 250 $ month, one fewer apartment is rented.
The maintenance cost for each occupied unit is $₹ 500$ month.

$i$. If $P$ is the rent price per apartment and $N$ is the number of rented apartments, then find the profit. $(1)$
$ii.$ If $x$ represents the number of apartments which are not rented, then express profit as a function of $x. (1)$
$iii.$ Find the number of apartments which are not rented so that profit is maximum. $(2)$
OR
Verify that profit is maximum at critical value of $x$ by second derivative test. $(2)$
Answer
View full question & answer→$i$. If $P$ is the rent price per apartment and $N$ is the number of rented apartments, the profit is given by $N P-500 N= N \ ( P -500)$
$[\because . ₹ 500 $ month is the maintenance charge for each occupied unit$]$
$ii$. Let $R$ be the rent price per apartment and $N$ is the number of rented apartments.
Now, if $x$ be the number of non $-$ rented apartments, then $N(x)=50-x$ and $R(x)=10000+250 x$
Thus, profit $= P ( x )= NR =(50- x )(10000+250 x -500)$
$=(50-x)(9500+250 x)=250(50-x)(38+x)$
$iii$. We have, $P(x)=250(50-x)(38+x)$
Now, $P^{\prime}(x)=250[50-x-(38+x)]=250[12-2 x]$
For maxima/minima, put $P ^{\prime}( x )=0$
$\Rightarrow 12-2 x=0$
$ \Rightarrow x=6$
Number of apartments are $6$ .
OR
$P^{\prime}(x)=250(12-2 x)$
$P^{\prime \prime}(x)=-500<0$
$\Rightarrow P ( x )$ is maximum at $x =6$
$[\because . ₹ 500 $ month is the maintenance charge for each occupied unit$]$
$ii$. Let $R$ be the rent price per apartment and $N$ is the number of rented apartments.
Now, if $x$ be the number of non $-$ rented apartments, then $N(x)=50-x$ and $R(x)=10000+250 x$
Thus, profit $= P ( x )= NR =(50- x )(10000+250 x -500)$
$=(50-x)(9500+250 x)=250(50-x)(38+x)$
$iii$. We have, $P(x)=250(50-x)(38+x)$
Now, $P^{\prime}(x)=250[50-x-(38+x)]=250[12-2 x]$
For maxima/minima, put $P ^{\prime}( x )=0$
$\Rightarrow 12-2 x=0$
$ \Rightarrow x=6$
Number of apartments are $6$ .
OR
$P^{\prime}(x)=250(12-2 x)$
$P^{\prime \prime}(x)=-500<0$
$\Rightarrow P ( x )$ is maximum at $x =6$

