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7th Edition

Waner + 1 other

Publisher: Cengage Learning,

ISBN: 9781337291248

Chapter 5.2, Problem 59E

Textbook Problem

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**Marketing Strategy** *FeatureRich Software Company* has a dilemma. Its new program, Doors-X 10.27, is almost ready to go on the market. However, the longer the company works on it, the better it can make the program and the more it can charge for it. The company’s marketing analysts estimate that if it delays *t* days, it can set the price at

dollars. On the other hand, the longer it delays, the more market share it will lose to its main competitor (see the next exercise), so if it delays *t* days it will be able to sell

To determine

**To calculate:** The number of days that Feature Rich should delay the release to get greatest revenue if the company’s marketing analysts estimate that if it delays

**Given Information:**

The company’s marketing analysts estimate that if it delays

Also, the longer it delays, the more market share it will lose, so if it delays

Copies of the program.

**Formula used:**

Steps to solve optimization problems:

Step 1: Identify the unknowns with the aid of diagram.

Step 2: Identify the objective function, the quantity to maximize or minimize.

Step 3: Identify the constraint, the equations relating variables or inequalities expressing limitations on the value of the variables.

Step 4: State the optimization problem

Step 5: Eliminate the extra variables, solve the constraint for one unknown and substitute in the objective function.

Step 6: Find the absolute maximum or absolute minimum of the objective function.

**Calculation:**

As it is provided that the company’s marketing analysts estimate that if it delays

Also, the longer it delays, the more market share it will lose, so if it delays

Copies of the program.

Now, the total revenue will be the price generated by the product times its market share at time

Now, as the revenue has to be maximized, so the objective function is

Applied Calculus

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T-Shirts The Physics Club sells E=mc2 T-shirts at...Ch. 5.6 - Comics The demand curve for original Iguanawoman...Ch. 5.6 - E-Readers The demand for Amazons Kindle e-reader...Ch. 5.6 - Monorail Service on Mars The demand for monorail...Ch. 5.6 - Corn In the 1930s the economist Henry Schultz...Ch. 5.6 - Demand for Fried Chicken A fried chicken franchise...Ch. 5.6 - Paint-By-Number The estimated monthly sales of...Ch. 5.6 - Paint-By-Number Repeat Exercise 15 using the...Ch. 5.6 - Linear Demand Functions A general linear demand...Ch. 5.6 - Exponential Demand Functions A general exponential...Ch. 5.6 - Hyperbolic Demand Functions A general hyperbolic...Ch. 5.6 - Quadratic Demand Functions A general quadratic...Ch. 5.6 - Modeling Linear Demand You have been hired as a...Ch. 5.6 - Modeling Linear Demand You have been hired as a...Ch. 5.6 - Modeling Exponential Demand As the new owner of a...Ch. 5.6 - Modeling Exponential Demand Repeat Exercise 23,...Ch. 5.6 - Income Elasticity of Demand: Live Drama The...Ch. 5.6 - Income Elasticity of Demand: Live Concerts The...Ch. 5.6 - Income Elasticity of Demand: Broadband in 2010 The...Ch. 5.6 - Income Elasticity of Demand: Broadband in 2007 The...Ch. 5.6 - Income Elasticity of Demand: Computer Usage in the...Ch. 5.6 - Income Elasticity of Demand: Internet Usage in the...Ch. 5.6 - Price Elasticity of Supply Given a supply equation...Ch. 5.6 - Price Elasticity of Supply Given a supply equation...Ch. 5.6 - Income Elasticity of Demand (based on a question...Ch. 5.6 - College Tuition (from the GRE Economics Test) A...Ch. 5.6 - Complete the following: When demand is inelastic,...Ch. 5.6 - Complete the following: When demand has unit...Ch. 5.6 - Given that the demand q is a differentiable...Ch. 5.6 - Given that the demand q is a differentiable...Ch. 5.6 - Your calculus study group is discussing price...Ch. 5.6 - Another member of your study group claims that...Ch. 5 - In Exercises 18, find all the relative and...Ch. 5 - In Exercises 18, find all the relative and...Ch. 5 - In Exercises 18, find all the relative and...Ch. 5 - In Exercises 18, find all the relative and...Ch. 5 - In Exercises 18, find all the relative and...Ch. 5 - In Exercises 18, find all the relative and...Ch. 5 - In Exercises 18, find all the relative and...Ch. 5 - In Exercises 18, find all the relative and...Ch. 5 - In Exercises 912, find the approximate...Ch. 5 - In Exercises 912, find the approximate...Ch. 5 - In Exercises 912, find the approximate...Ch. 5 - In Exercises 912, find the approximate...Ch. 5 - In Exercises 13 and 14, f is continuous on [3,3],...Ch. 5 - In Exercises 13 and 14, f is continuous on [3,3],...Ch. 5 - In Exercises 15 and 16 the position s of a point...Ch. 5 - In Exercises 15 and 16 the position s of a point...Ch. 5 - In Exercises 1722, sketch the graph of the given...Ch. 5 - In Exercises 1722, sketch the graph of the given...Ch. 5 - In Exercises 1722, sketch the graph of the given...Ch. 5 - In Exercises 1722, sketch the graph of the given...Ch. 5 - In Exercises 1722, sketch the graph of the given...Ch. 5 - In Exercises 1722, sketch the graph of the given...Ch. 5 - Revenue Demand for the latest best-seller at...Ch. 5 - Revenue Demand for The Secret Loves of John O, a...Ch. 5 - Profit Taking into account storage and shipping,...Ch. 5 - Profit Taking into account storage and shipping,...Ch. 5 - Office Space Although still a sophomore at...Ch. 5 - Recreation Space As a result of complaints by the...Ch. 5 - Box Design The sales department at...Ch. 5 - Box Redesign The sales department at...Ch. 5 - Sales OHaganBooks.com modeled its weekly sales...Ch. 5 - Sales The quarterly sales of OHagan oPods...Ch. 5 - Chance Encounter Marjory Duffin is walking north...Ch. 5 - Company Logos OHaganBooks.coms website has an ani-...Ch. 5 - Elasticity of Demand (Compare Exercise 23.) Demand...Ch. 5 - Elasticity of Demand (Compare Exercise 24.) Demand...Ch. 5 - Elasticity of Demand Last year OHaganBooks.com...Ch. 5 - Elasticity of Demand JungleBooks.com (one of...

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