Posted by Erin on Tuesday, February 21, 2012 at 1:35pm.
You operate a gaming Web site, where users must pay a small fee to log on. When you charged $3 the demand was 520 log-ons per month. When you lowered the price to $2.50, the demand increased to 780 log-ons per month.
(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.
(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.
[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.
[Do I plug in some number?]
What is the largest possible revenue?
[How do I find this?]
- Algebra - Steve, Tuesday, February 21, 2012 at 6:56pm
If 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
-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
Answer this Question
- math - You operate a gaming Web site, where users must pay a small fee to log on...
- math - Logarithm!!! Select all of the following that are true statements: (a) ...
- Algebra 2 - how do not understand how to do this Log X + Lob (X-3) = 1 I know I ...
- Math Help Please - Which of the following expressions is equal to log (x sqrt-y...
- Mathematics - Prove that log a, log ar, log ar^2 is an a.p. Is the following ...
- college algebra - Write expression as one logarithm and simplify if appropriate...
- algebra - logarithms Solve the following equations 3^x-2=6 Add 2 to both sides ...
- math(Please help) - 1) use the properties of logarithms to simplify the ...
- math - write as a single logarithm: -2logbase3(1/x)+(1/3)logbase3(square root of...
- Economics - Very confused on how to figure these out. Suppose that the following...