Question
You operate a gaming Web site, www.mudbeast.net, where users must pay a small fee to log on. When you charged $3 the demand was 1080
You operate a gaming Web site, www.mudbeast.net, where users must pay a small fee to log on. When you charged $3 the demand was 1080 log-ons per month. When you lowered the price to $2.50, the demand increased to 1350 log-ons per month.
(a) Construct a linear demand function for your Web site and hence obtain the monthly revenueRas a function of the log-on feex.
R(x) = |
(b) Your Internet provider charges you a monthly fee of $10 to maintain your site. Express your monthly profitPas a function of the log-on feex. HINT [See Example 4.]
P(x) = |
Determine the log-on fee you should charge to obtain the largest possible monthly profit.
x= $
What is the largest possible monthly profit?
$
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