00:01
Here we have a situation where we want to maximize the revenue.
00:03
A streaming service is going to charge 8 per month and that at that price they're gonna have 15 million subscribers.
00:09
If you multiply those two numbers, you'll get that right now i have 8 times 12, which is gonna be 96 in revenue.
00:17
But wait, let's increase the price.
00:21
So instead of charging 8, i'm gonna charge 8 plus x.
00:25
I increase the price and every time i do that, i'm gonna lose 1 .5 million, so minus 1 .5 subscribers and that's for every x.
00:37
So really this is gonna be my revenue.
00:40
Now if i want to maximize this revenue, all i have to do is take the derivative and set it equal to 0.
00:45
But first i'm gonna simplify and get 8 times 12 is 96 minus 1 .5 times 8 is 14...