In a previous post, Ned suggested that for every 75 simultaneous active users (concurrent), you should allocate 1GB of RAM to a LMS worker. So for 500 concurrent users, you'd need to allocate around 7GB of RAM to the LMS workers (7 workers each handling 75 concurrent users). You can read his "crude sizing guidelines" post here:
https://groups.google.com/d/msg/openedx-ops/_El2M0ifXmc/R5vCdGaBBgAJ
Nate