February 23, 2017

Homework Help: Algebra

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?]

Thank you.

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