The answer is A!! Hope I helped
Answer:
121
Step-by-step explanation:
<em>Ohhh, interest problems. I haven't done an equation like this in a long time, but I will attempt.</em>
<em>I would say that the answer is the 2nd option. The equation is i = (5200)(0.06)(2.5).</em>
<em>The traditional interest formula is I = (P)(R)(N).</em>
<em>P = the original amount of money given</em>
<em>R = interest rate</em>
<em>N = the amount of time</em>
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<em>I hope this answers your question (and that I understood the question correctly!).</em>
<em>-Toremi</em>
A) Demand function
price (x) demand (D(x))
4 540
3.50 810
D - 540 810 - 540
----------- = -----------------
x - 4 3.50 - 4
D - 540
----------- = - 540
x - 4
D - 540 = - 540(x - 4)
D = -540x + 2160 + 540
D = 2700 - 540x
D(x) = 2700 - 540x
Revenue function, R(x)
R(x) = price * demand = x * D(x)
R(x) = x* (2700 - 540x) = 2700x - 540x^2
b) Profit, P(x)
profit = revenue - cost
P(x) = R(x) - 30
P(x) = [2700x - 540x^2] - 30
P(x) = 2700x - 540x^2 - 30
Largest possible profit => vertex of the parabola
vertex of 2700x - 540x^2 - 30
When you calculate the vertex you find x = 5 /2
=> P(x) = 3345
Answer: you should charge a log-on fee of $2.5 to have the largest profit, which is $3345.