Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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__ ]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Active Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

2nd Edition

9781266566899

Students also viewed these Economics questions