You operate a gaming Web site, where users must pay a small fee to log on. When you charged $4 the demand was 510 log-ons per month. When you lowered the price to $3.50, the demand increased to 765 log-ons per month.
(a) Construct a linear demand function for your web site and hence obtain the monthly revenue R as a function of the log-on fee x.
q(x) =
1
Your answer is correct.
R(x) =
2
Your answer is correct.
(b) Your Internet provider charges you a monthly fee of $30 to maintain your site. Express your monthly profit P as a function of the log-on fee x.
P(x) =
3
Your answer is correct.
Determine the log-on fee you should charge to obtain the largest possible monthly profit.
$ 4Your answer is incorrect.
What is the largest possible monthly profit?
1 answer