Concept explainers
Revenue and Profit Some time ago, a consultant formulated the following linear model of demand for online novels:
a. Use this model to express the monthly revenue as a function of the unit price p. Hence, determine the price you should charge for a maximum monthly revenue.
b. Author royalties and copyright fees cost the company an average of $4 per novel, and the monthly cost of operating and maintaining the online publishing service amounts to $900 per month. Express the monthly profit P as a function of the unit price p. Hence, determine the unit price you should charge for a maximum monthly profit. What is the resulting profit (or loss)?
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Chapter 2 Solutions
Finite Mathematics and Applied Calculus (MindTap Course List)
- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:CengageTrigonometry (MindTap Course List)TrigonometryISBN:9781337278461Author:Ron LarsonPublisher:Cengage LearningAlgebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning