Question
In: Math
Coastal Soda Sales has been granted exclusive market rights to the upcoming Beaufort Seafood Festival. This...
Coastal Soda Sales has been granted exclusive market rights to the upcoming Beaufort Seafood Festival. This means that during the festival Coastal will have a monopoly, and it is anxious to take advantage of this position in its pricing strategy. The daily demand function is
p = 2 − 0.0004x
and the daily total cost function is
C(x) = 800 + 0.2x + 0.0001x2
where x is the number of units.
(a) Determine Coastal's total revenue and profit functions.
| R(x) | = | |
| P(x) | = |
(b) What profit-maximizing price per soda should Coastal
charge?
$ per soda
How many sodas per day would it expect to sell at this price?
sodas per day
What would be the daily profits?
$ per day
(c) If the festival organizers wanted to set an economically
efficient price of $1.25 per soda, how would this change the
results from part (b)? (Round your answer for daily profits to the
nearest cent.)
| sodas per day it would expect to sell | sodas per day | |
| daily profits | $ | per day |
Solutions
milcah answered 1 year agoRelated Solutions
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