Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows (D_s = demand for
Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows (D_s = demand for the Sky Eagle, P_s is the selling price of the Sky Eagle, D_H is the demand for the Horizon and Ph is the selling price of the Horizon): D_s = 225 - 0.6P_S + 0.3P_H D_H = 270 + 0.1P_S - 0.58P_H The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these two models. Choose the correct answer below. P_SD_S + P_hD_h = P_h(270 - 0.1P_S - 0.58P_h) + P_s(225 - 0.6P_S + 0.3P_H) P_SD_S - P_hD_h = P_s(225 - 0.6P_S + 0.3P_h) - P_h(270 - 0.1P_S - 0.58P_H) P_sD_s + P_hD_h = P_s(225 - 0.6P_S + 0.3P_H) + P_h(270 + 0.1P_S - 0.58P_H) P_sD_s - P_hD_h = P_s(225 + 0.6P_S + 0.3P_H) - P_h(270 - 0.1P_S - 0.58P_H) Find the prices that maximize revenue. If required, round your answers to two decimal places. Optimal Solution: Selling price of the Sky Eagle (P_s): Selling price of the Horizon (p_H): Revenue
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started