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Coastal Soda Sales has been granted exclusive market rights to the upcoming Beaufort Seafood Festival. This means that during the festival Coastal will have a monopoly, and it is anxious to take advantage of this position in its pricing strategy. The daily demand function is p = 2 - 0.0004x and the daily total cost function is C(x) = 600 + 0.2x + 0.0001x2 where x is the number of units. (a) Determine Coastal's total revenue, R(x), and profit functions, P(x), in dollars. R(x) = 2x – 0.0004x? P(x) = -0.0005x². + 1.8x – 600 (b) What profit-maximizing price per soda should Coastal charge? X per soda How many sodas per day would it expect to sell at this price? sodas per day What would be the daily profits? per day (c) If the festival organizers wanted to set an economically efficient price of $1.25 per soda, how would this change the results from part (b)? (Round your answer for daily profits to the nearest cent.) sodas per day it would expect to sell sodas per day daily profits $ per day

Coastal Soda Sales has been granted exclusive market rights to the upcoming Beaufort Seafood Festival. This means that during the festival Coastal will have a monopoly, and it is anxious to take advantage of this position in its pricing strategy. The daily demand function is p = 2 - 0.0004x and the daily total cost function is C(x) = 600 + 0.2x + 0.0001x2 where x is the number of units. (a) Determine Coastal's total revenue, R(x), and profit functions, P(x), in dollars. R(x) = 2x – 0.0004x? P(x) = -0.0005x². + 1.8x – 600 (b) What profit-maximizing price per soda should Coastal charge? X per soda How many sodas per day would it expect to sell at this price? sodas per day What would be the daily profits? per day (c) If the festival organizers wanted to set an economically efficient price of $1.25 per soda, how would this change the results from part (b)? (Round your answer for daily profits to the nearest cent.) sodas per day it would expect to sell sodas per day daily profits $ per day

Algebra and Trigonometry (6th Edition)
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Coastal Soda Sales has been granted exclusive market rights to the upcoming Beaufort Seafood Festival. This means that during the festival Coastal will have a monopoly, and it is anxious to take advantage of this position in its pricing strategy. The daily demand function is p = 2 - 0.0004x and the daily total cost function is C(x) = 600 + 0.2x + 0.0001x2 where x is the number of units. (a) Determine Coastal's total revenue, R(x), and profit functions, P(x), in dollars. R(x) = 2x – 0.0004x² P(x) = -0.0005x2 + 1.8x – 600 (b) What profit-maximizing price per soda should Coastal charge? $ X per soda How many sodas per day would it expect to sell at this price? sodas per day What would be the daily profits? $ per day (c) If the festival organizers wanted to set an economically efficient price of $1.25 per soda, how would this change the results from part (b)? (Round your answer for daily profits to the nearest cent.) sodas per day it would expect to sell sodas per day daily profits per day
Transcribed Image Text:Coastal Soda Sales has been granted exclusive market rights to the upcoming Beaufort Seafood Festival. This means that during the festival Coastal will have a monopoly, and it is anxious to take advantage of this position in its pricing strategy. The daily demand function is p = 2 - 0.0004x and the daily total cost function is C(x) = 600 + 0.2x + 0.0001x2 where x is the number of units. (a) Determine Coastal's total revenue, R(x), and profit functions, P(x), in dollars. R(x) = 2x – 0.0004x² P(x) = -0.0005x2 + 1.8x – 600 (b) What profit-maximizing price per soda should Coastal charge? $ X per soda How many sodas per day would it expect to sell at this price? sodas per day What would be the daily profits? $ per day (c) If the festival organizers wanted to set an economically efficient price of $1.25 per soda, how would this change the results from part (b)? (Round your answer for daily profits to the nearest cent.) sodas per day it would expect to sell sodas per day daily profits per day
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