Sunday

April 20, 2014

April 20, 2014

Posted by **Erin** on Tuesday, February 21, 2012 at 1:35pm.

(a) Construct a linear demand function for your Web site and hence obtain the monthly revenue R as a function of the log-on fee x.

R(x)=

(b) Your Internet provider charges you a monthly fee of $10 to maintain your site. Express your monthly profit P as a function of the log-on fee x.

P(x)=

[What formula do I use to solve this? How should I approach it?]

Determine the log-on fee you should charge to obtain the largest possible monthly profit.

x=$

[Do I plug in some number?]

What is the largest possible revenue?

[How do I find this?]

Thank you.

- Algebra -
**Steve**, Tuesday, February 21, 2012 at 6:56pmIf we have a linear demand function, it will look like

R = mx+b where x is the price and y is the demand at that price.

780 = 2.5m + b

520 = 3m + b

so,

-260 = .5m

m = -520

b = 2080

R = 2080 - 520x

profit = revenue - cost

revenue = demand * price

P = R*x - 10

P = 2080x - 520x^2 - 10

you have a parabola, where the vertex is at x =

-b/2a = 2080/1040 = 2

P(2) = 2070

**Related Questions**

math - You operate a gaming Web site, where users must pay a small fee to log on...

English - Create a Topic Sentence where the blank space is. ...

English - Please Help If I get information from one web site and that web site...

Microeconomics - What has the video gaming industry done from a microeconomic ...

business - hello I have subscribed with home work site" called Internet Secrets...

Parenthetical Citations - How detailed do I need to be with my parenthetical ...

IT - select a web site that contains e-commerce applications. What are the ...

Web Site question - What features does a web site need to offer in order for you...

bus research - If each of two independent file servers has a reliability of 93% ...

web design - Final Project: Web Site Analysis · Analyze the Web site you ...