Question
You operate a gaming Web site where users pay a small fee to log on. When you charge $2 the demand was 280 log-ons per month. When
you lowered the price to $1.50, the demand increased to 593 log-ons per month
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.
Your internet provider charges you a monthly fee of 30 to maintain your site. There is no cost per log-on. Express your monthly profit P as a
function of the log-on fee p.
Now determine the log-on fee you should charge to obtain the largest possible monthly profit:
dollars.
What is the largest possible monthly profit?
dollars per month
expand button
Transcribed Image Text:You operate a gaming Web site where users pay a small fee to log on. When you charge $2 the demand was 280 log-ons per month. When you lowered the price to $1.50, the demand increased to 593 log-ons per month 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. Your internet provider charges you a monthly fee of 30 to maintain your site. There is no cost per log-on. Express your monthly profit P as a function of the log-on fee p. Now determine the log-on fee you should charge to obtain the largest possible monthly profit: dollars. What is the largest possible monthly profit? dollars per month
Expert Solution

Want to see the full answer?

Check out a sample Q&A here
Blurred answer
Students who’ve seen this question also like:
Calculus: Early Transcendentals
Calculus: Early Transcendentals
8th Edition
ISBN: 9781285741550
Author: James Stewart
Publisher: Cengage Learning
Not helpful? See similar books
Calculus: Early Transcendentals
Calculus: Early Transcendentals
Functions And Models. 1RCC
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.

Related Calculus Q&A

Find answers to questions asked by students like you.

Q: You have just opened a new nightclub, Russ' Techno Pitstop, but are unsure of how high to set the…

A: General linear demand equation of function y with variable x, where m is the slope and c is the…

Q: You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you…

A: (a).   In this quation givan that: When you charged $4 the demand was 580 and when you charge $3.50…

Q: You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you…

A: Click to see the answer

Q: You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you…

A: Click to see the answer

Q: You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you…

A: Click to see the answer

Q: During the 1950s the wholesale price for chicken for a country fell from 25¢ per pound to 14¢ per…

A: Click to see the answer

Q: One month, 1000 electric pencil sharpeners when the unit price was $12. The next month the price was…

A: When the price is $12, 1000 electric pencil sharpeners were sold. When the price drops to $10, the…

Q: You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you…

A: Let's find.

Q: Some time ago, a consultant formulated the following linear model of demand for online novels, where…

A: Here, the monthly demand function is: q=-60p+910 where p is the price in dollars per online novel…

Q: You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you…

A: (a) Consider the given information:When fee was charged $3 the demand was 510 log-ons per month and…

Q: The demand for Costaatt's College newspaper is 3,000 copies each week if the paper is given away…

A: find the demand function q=number of newspaper p=price per newspaper when p=0, q=3000 when p=$0.1,…

Q: Maximurm Revenue When a wholesaler sold a product at $30 per unit, sales were 380 units per week.…

A: Maximum revenue at a price = $53

Q: When the admission price for a baseball game was $4 per ticket, 70,000 tickets were sold. When the…

A: x= number of tickets y=price  two points are x1,y1=70000, 4 x2,y2=63000, 5 the slope of the line is…

Q: A manufacturer has been selling 1150 television sets a week at $540 each. A market survey indicates…

A: A manufacturer has been selling 1150 teleevision sets a week at $540 each.A market survey indicates…

Q: Sales figures show a company that priced pens at $1 each, sold 1,960 pens per week. When they…

A: Given  When price $1 then 1960 pens sold per week  When price $5 then 1800 pens sold per week.

Q: During the 1950s the wholesale price for chicken for a country fell from 25¢ per pound to 14¢ per…

A: x=price  y=number of pounds two points are x1,y1=(25,23.5) x2,y2=14,29 the slope of the line is…

Q: A company manufactures and sells water bottles. Last year the company sold the water bottles for $14…

A: given that price of water bottle is $14 and the sales average 90 bottles when price is increased by…

Q: The following table shows worldwide sales of a certain type of cell phone and their average selling…

A: Click to see the answer

Q: A baseball team plays in a stadium that holds 54,000 spectators. With ticket prices at $10, the…

A: First of all, let's describe attendance x in terms of the ticket price P.  Find the linear function…

Q: The following table shows worldwide sales of a certain type of cell phone and their average selling…

A: Linear regression: Suppose (x1, y1), (x2, y2)---(xn, yn) are n pairs of observations on variable X…

Q: During the 1950s the wholesale price for chicken for a country fell from 25c per pound to 14c per…

A: Click to see the answer

Q: The following table shows worldwide sales of a certain type of cell phone and their average selling…

A: topic - linear function

Q: A baseball team plays in a stadium that holds 54,000 spectators. With ticket prices at $10, the…

A: Click to see the answer

Q: A baseball team plays in a stadium that holds 52,000 spectators. With ticket prices at $10, the…

A: Click to see the answer

Q: A baseball team plays in a stadium that holds 54,000 spectators. With ticket prices at $10, the…

A: R(x) = x ( p(x) ) The Revenue function is as written with p(x) being the demand/price function and…

Q: A baseball team plays in a stadium that holds 54,000 spectators. With ticket prices at $10, the…

A: To find the demand function

Q: A baseball team plays in a stadium that holds 54,000 spectators. With ticket prices at $10, the…

A: Here we find out demand function then we find out revenue function.

Q: A baseball team plays in a stadium that holds 54,000 spectators. With ticket prices at $10, the…

A: A system of linear equations is basically a set of linear equations involving the set of same…

Q: Use the data to obtain a linear demand function for smartphones, and use your demand equation to…

A: Given Data : Year 2013 2017 Selling Price (x) 335 265 Sales (y) 1010 1710   Let Selling…

Q: IOR Kavertising Ás Sales Manager for Montevideo Productions, Inc., you are planning to review the…

A: Since there are multiple sub parts the first three sub parts is answered.Kindly repost with the…

Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…

A: Click to see the answer

Q: .. A lifetime subscription to an online gaming site is estimated to have demand and supply…

A: Given demand function as                                                    D(q)=20001+0.02q supply…

Q: For the demand equation, express the total revenue R as a function of the price p per item. 9%3D —4р…

A: Click to see the answer

Q: If quantity demand as a function of price is defined as Q = -2.5p + 150, what is the point price…

A: Since You have posted multiple questions, I answered the first one. Please Repost for other.

Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: ) A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of…

A: Click to see the answer

Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The following table shows worldwide sales of a certain type of cell phone and their average…

A: Click to see the answer

Q: A store can sell 400 candy bars per week when the price is $0.50 per candy bar and they can sell 350…

A: Click to see the answer

Q: If the demand for a thingy is 12,000 per month when the price is $12 and 15,000 when the price is…

A: Find the slope of function.

Q: A caterer offers a package that feeds up to 50 people for $1,500 and adds an additional charge of…

A: g is the number of additional guests. So at least 50 people are  there . For those 50 people he…

Q: A manufacturer has been selling 1000 television sets a week at $450 each. A market survey indicates…

A: Click to see the answer

Q: The average ticket price for a concert at the opera house was $25. The average attendance was 5000.…

A: Given, When average ticket price is $ 25 then average attendance is 5000  When average ticket price…

Q: Pack-Em-In Real Estate is building a new housing development. The more houses it builds, the less…

A: We have to find the demand function and largest possible revenue.     According to our guidelines we…

Q: A manufacture has been selling 1400 television sets a week at $480 each. A market survey indicates…

A: Click to see the answer

Q: When the price, p, charged for a boat tour was $30, the average number of passengers per week, N,…

A: Given query is to find the function for demand.

Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…

A: Given that, "Fixed costs = 15 sinks, Total costs = $2,500, Demand function q = 360-p, where q is the…

Q: A retailer has been selling 2000 tablet computers a week at $250 each. The marketing department…

A: Click to see the answer

Q: use the price demand equation to determine whether demand is elastic, inelastic, or has unit…

A: Given

Knowledge Booster
Recommended textbooks for you
  • Calculus: Early Transcendentals
    Calculus
    ISBN:9781285741550
    Author:James Stewart
    Publisher:Cengage Learning
    Thomas' Calculus (14th Edition)
    Calculus
    ISBN:9780134438986
    Author:Joel R. Hass, Christopher E. Heil, Maurice D. Weir
    Publisher:PEARSON
    Calculus: Early Transcendentals (3rd Edition)
    Calculus
    ISBN:9780134763644
    Author:William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
    Publisher:PEARSON
  • Calculus: Early Transcendentals
    Calculus
    ISBN:9781319050740
    Author:Jon Rogawski, Colin Adams, Robert Franzosa
    Publisher:W. H. Freeman
    Precalculus
    Calculus
    ISBN:9780135189405
    Author:Michael Sullivan
    Publisher:PEARSON
    Calculus: Early Transcendental Functions
    Calculus
    ISBN:9781337552516
    Author:Ron Larson, Bruce H. Edwards
    Publisher:Cengage Learning
  • Calculus: Early Transcendentals
    Calculus
    ISBN:9781285741550
    Author:James Stewart
    Publisher:Cengage Learning
    Thomas' Calculus (14th Edition)
    Calculus
    ISBN:9780134438986
    Author:Joel R. Hass, Christopher E. Heil, Maurice D. Weir
    Publisher:PEARSON
    Calculus: Early Transcendentals (3rd Edition)
    Calculus
    ISBN:9780134763644
    Author:William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
    Publisher:PEARSON
    Calculus: Early Transcendentals
    Calculus
    ISBN:9781319050740
    Author:Jon Rogawski, Colin Adams, Robert Franzosa
    Publisher:W. H. Freeman
    Precalculus
    Calculus
    ISBN:9780135189405
    Author:Michael Sullivan
    Publisher:PEARSON
    Calculus: Early Transcendental Functions
    Calculus
    ISBN:9781337552516
    Author:Ron Larson, Bruce H. Edwards
    Publisher:Cengage Learning