Chapter 11.2, Problem 20E

(a)

To determine

To calculate: The price that the town’s fishery should charge in order to produce a demand of $400$ pounds of tuna per month such that demand equation for tuna is given by the function $p=\frac{60}{q^{0.5}}$ where p is the price in dollars and q is the number of pounds of tuna that can be sold for a price p and lies in the range $200\le q\le 800$.

(b)

To determine

To calculate: The monthly revenue R as the function of q such that demand equation for tuna is given by the function $p=\frac{60}{q^{0.5}}$ where p is the price in dollars and q is the number of pounds of tuna that can be sold for a price p and lies in the range $200\le q\le 800$.

(c)

To determine

To calculate: The revenue and marginal revenue at a demand level of $400$ pounds per month such that demand equation for tuna is given by the function $p=\frac{60}{q^{0.5}}$ where p is the price in dollars and q is the number of pounds of tuna that can be sold for a price p and lies in the range $200\le q\le 800$ and also interpret the answers.

(d)

To determine

The recommendation that whether the fishery should raise or lower the prices of tuna to increase its revenue if town fishery’s catch monthly tuna amounted to $400$ pounds and the price is same as in part (a) such that demand equation for tuna is given by the function $p=\frac{60}{q^{0.5}}$ where p is the price in dollars and q is the number of pounds of tuna that can be sold for a price p and lies in the range $200\le q\le 800$.