You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you charged $3 the demand was 510 log-ons per month. When you lowered the price to $2.50, the demand...




You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you charged $3 the demand was 510 log-ons per month. When you lowered the price to $2.50, the demand increased to 765log-ons per month.


(a) Construct a linear demand function for your website and hence obtain the monthly revenue
R
as a function of the log-on fee
x.










R(x) =







(b) Your Internet provider charges you a monthly fee of $10 to maintain your site. Express your monthly profit
P
as a function of the log-on fee
x. HINT [See Example 4.]










P(x) =







Determine the log-on fee you should charge to obtain the largest possible monthly profit.


x
= $



What is the largest possible monthly profit?

$


Jun 04, 2022
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