Website Profit The latest demand equation for your gaming website, www.mudbeast.net, is given by q=-100x + 1500 where q is the number of users who log on per month and x is the log-on fee you charge. Your Internet provider bills you as follows. Site maintenance fee: $50 per month High-volume access fee: $0.50 per log-on Find the monthly cost as a function of the log-on fee x. C(x) = X Find the monthly profit as a function of x. P(x) = Determine the log-on fee you should charge (in dollars) to obtain the largest possible monthly profit. x = $ per log-on What is the largest possible monthly profit (in dollars)? $

Website Profit The latest demand equation for your gaming website, www.mudbeast.net, is given by q=-100x + 1500 where q is the number of users who log on per month and x is the log-on fee you charge. Your Internet provider bills you as follows. Site maintenance fee: $50 per month High-volume access fee: $0.50 per log-on Find the monthly cost as a function of the log-on fee x. C(x) = X Find the monthly profit as a function of x. P(x) = Determine the log-on fee you should charge (in dollars) to obtain the largest possible monthly profit. x = $ per log-on What is the largest possible monthly profit (in dollars)? $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Website Profit The latest demand equation for your gaming website, www.mudbeast.net, is given by
q=-100x + 1500
where q is the number of users who log on per month and x is the log-on fee you charge. Your Internet provider bills you as follows.
Site maintenance fee: $50 per month
High-volume access fee: $0.50 per log-on
Find the monthly cost as a function of the log-on fee x.
C(x): =
X
Find the monthly profit as a function of x.
P(x) =
Determine the log-on fee you should charge (in dollars) to obtain the largest possible monthly profit.
x = $
per log-on
What is the largest possible monthly profit (in dollars)?
$

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Step 1: Define profit function

Step 2: Find C(x)

Step 3: Find P(x)

Step 4: Determine x

Step 5: Find largest possible monthly profit

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