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Building Condo Units to Maximize Profit

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Mr. Potter plans to build a condominium building where each unit costs $150,000 to build. The demand for units is listed in a table showing 7 people willing to pay $200,000, 2 people $190,000, 5 people $180,000, 3 people $170,000 and 6 people $160,000. To maximize profit, the number of units Mr. Potter should build is 7.

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Mr. Potter is going to build a new condominium building. The cost of building each unit is $150,000. The below table lists the demand for the units. Assume he can perfectly price discriminate. To maximize profit, the number of units he should build is [blank]. 7 2 5 3 6 4

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