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You operate a gaming Web site, www.mudbeast.net, where users must pay a small fee to log on. When you charged $4 the demand was 540
You operate a gaming Web site, www.mudbeast.net, where users must pay a small fee to log on. When you charged $4 the demand was 540 log-ons per month. When you lowered the price to $3.50, the demand increased to 810 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 $50 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? sL__ ]
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