Website Profit You operate a gaming website, www.mudbeast.net, where users must pay a small fee to...

 

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Website Profit You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you charged $3 the demand was 1060 log-ons per month. When you lowered the price to $2.50, the demand increased to 1325 log-ons per month. (a) Construct a linear demand function for your website and hence obtain the monthly revenue R as a function of the log-on fee x. 2 R(x)=-530x + 2650x (b) Your Internet provider charges you a monthly fee of $10 to maintain your site. Express your monthly profit P as a function of the log-on fee x. P(x) = -530x+ 2650x - 10 Determine the log-on fee you should charge to obtain the largest possible monthly profit (in dollars). x = $ 1.56 X What is the largest possible monthly profit (in dollars)? $ 1.56 Website Profit You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you charged $3 the demand was 1060 log-ons per month. When you lowered the price to $2.50, the demand increased to 1325 log-ons per month. (a) Construct a linear demand function for your website and hence obtain the monthly revenue R as a function of the log-on fee x. 2 R(x)=-530x + 2650x (b) Your Internet provider charges you a monthly fee of $10 to maintain your site. Express your monthly profit P as a function of the log-on fee x. P(x) = -530x+ 2650x - 10 Determine the log-on fee you should charge to obtain the largest possible monthly profit (in dollars). x = $ 1.56 X What is the largest possible monthly profit (in dollars)? $ 1.56

Answer rating: 100% (QA)

To find the logon fee that maximizes monthly profit we need to fi... View the full answer