Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows. De demand for the Sky Eagle P-selling price of the Sky Eagle DH demand for the Horizon PH selling price of the Horizon D-227-0.60P + 0.35PM DH-275+0.10P-0.64PH The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function R (in terms of Pg and P only) for these two models, and find the prices (in dollars) that maximizes revenue. (Round your answers to two decimal places.) R-227Ps - 0.6(Ps)² +0.45PPH+275PH-0.64(PH)² Revenue Price for Sky Eagle Price for Horizon Optimal revenue P₁-S PH-S R$ x x x
Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows. De demand for the Sky Eagle P-selling price of the Sky Eagle DH demand for the Horizon PH selling price of the Horizon D-227-0.60P + 0.35PM DH-275+0.10P-0.64PH The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function R (in terms of Pg and P only) for these two models, and find the prices (in dollars) that maximizes revenue. (Round your answers to two decimal places.) R-227Ps - 0.6(Ps)² +0.45PPH+275PH-0.64(PH)² Revenue Price for Sky Eagle Price for Horizon Optimal revenue P₁-S PH-S R$ x x x
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows:
- \( D_S \) = demand for the Sky Eagle
- \( P_S \) = selling price of the Sky Eagle
- \( D_H \) = demand for the Horizon
- \( P_H \) = selling price of the Horizon
\[
D_S = 227 - 0.60P_S + 0.35P_H \\
D_H = 275 + 0.10P_S - 0.64P_H
\]
The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function \( R \) (in terms of \( P_S \) and \( P_H \) only) for these two models, and find the prices (in dollars) that maximize revenue. (Round your answers to two decimal places.)
**Revenue Function:**
\[
R = 227P_S - 0.6(P_S)^2 + 0.35P_SP_H + 275P_H + 0.10P_SP_H - 0.64(P_H)^2
\]
**To Be Determined:**
- Price for Sky Eagle \( P_S \) = $ [ ]$
- Price for Horizon \( P_H \) = $ [ ]$
- Optimal revenue \( R \) = $ [ ]$
(Note: Boxes with an "X" next to them indicate inputs/values that need to be calculated or filled in.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F862c5bc2-e09a-4feb-bd28-f7638a835094%2F72043e76-86b7-46f2-8392-caaf20d62545%2Fnksfxob_processed.png&w=3840&q=75)
Transcribed Image Text:Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows:
- \( D_S \) = demand for the Sky Eagle
- \( P_S \) = selling price of the Sky Eagle
- \( D_H \) = demand for the Horizon
- \( P_H \) = selling price of the Horizon
\[
D_S = 227 - 0.60P_S + 0.35P_H \\
D_H = 275 + 0.10P_S - 0.64P_H
\]
The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function \( R \) (in terms of \( P_S \) and \( P_H \) only) for these two models, and find the prices (in dollars) that maximize revenue. (Round your answers to two decimal places.)
**Revenue Function:**
\[
R = 227P_S - 0.6(P_S)^2 + 0.35P_SP_H + 275P_H + 0.10P_SP_H - 0.64(P_H)^2
\]
**To Be Determined:**
- Price for Sky Eagle \( P_S \) = $ [ ]$
- Price for Horizon \( P_H \) = $ [ ]$
- Optimal revenue \( R \) = $ [ ]$
(Note: Boxes with an "X" next to them indicate inputs/values that need to be calculated or filled in.)
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 7 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education