Question #2) Hypothetical Story Line Imagine that you have been hired as Amazon VA to increase the demand of a product. As the student of the finance you are aware that the demand varies with the price and vice versa. So, after looking at the data provided by the Amazon, you mathematically modelled price, in terms of revenue as given below. You were sure that by determining the right price you can maximize the revenue and the demand. Therefore, you planned to increase the demand by manipulating the price in terms of revenue as given below. R = f(p) = -20 p ?+ 10p a) Determine the price which should be charged in order to maximize total revenue. In other words find the maxima. b) What is the maximum profit of the annual total revenue of Amazon for the product that you were hired for? In other words find the maximum point.

Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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Question #2)
Hypothetical Story Line
Imagine that you have been hired as Amazon VA to increase the demand of a product. As the
student of the finance you are aware that the demand varies with the price and vice versa. So,
after looking at the data provided by the Amazon, you mathematically modelled price, in terms
of revenue as given below. You were sure that by determining the right price you can maximize
the revenue and the demand. Therefore, you planned to increase the demand by manipulating
the price in terms of revenue as given below.
R = f(r) = -20 p ?+ 10p
a) Determine the price which should be charged in order to maximize total revenue. In other
words find the maxima.
b) What is the maximum profit of the annual total revenue of Amazon for the product that
you were hired for? In other words find the maximum point.
Transcribed Image Text:Question #2) Hypothetical Story Line Imagine that you have been hired as Amazon VA to increase the demand of a product. As the student of the finance you are aware that the demand varies with the price and vice versa. So, after looking at the data provided by the Amazon, you mathematically modelled price, in terms of revenue as given below. You were sure that by determining the right price you can maximize the revenue and the demand. Therefore, you planned to increase the demand by manipulating the price in terms of revenue as given below. R = f(r) = -20 p ?+ 10p a) Determine the price which should be charged in order to maximize total revenue. In other words find the maxima. b) What is the maximum profit of the annual total revenue of Amazon for the product that you were hired for? In other words find the maximum point.
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