Saturday

August 30, 2014

August 30, 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...

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...

Algebra 2 - -Explain the difference between log base b (mn) and ( log base b of ...