In: Math
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 |