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 530
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 530 log-ons per month. When you lowered the price to $2.50, the demand increased to 795 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 p.
R(p) = |
(b) Your Internet provider charges you a monthly fee of $20 to maintain your site. Express your monthly profit P as a function of the log-on fee p. HINT [See Example 4.]
P(p) = |
|
Determine the log-on fee you should charge to obtain the largest possible monthly profit. p = $ What is the largest possible monthly profit?
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