Question

Step 1

So we are given earlier we were charging $2 for every log on and there were 280 log-ons oer month

But, now we are charging $1.5 for every log on and demand has increased to 593 logons per month

Step 2

So as per the present scenario we have to construct a linear demand function for monthly revenue R as a function of log-0n fee p

Let's assume that log on fee be $p per log on ,

so for 593 log-ons , monthy revence would be given as $593 times p

The equation for monthly revenue is shown below:

Step 3

Next we have to find the monthly profit P(p) as a function of log on fee p when we are given that our internet provider co...

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