Explanation Given Information: The company’s marketing analysts estimate that if it delays t days, it can set the price at, 100 + 2 t Dollars. Also, the longer it delays, the more market share it will lose, so if it delays t days it will be able to sell, 400 , 000 − 2500 t Copies of the program. Formula used: Steps to solve optimization problems: Step 1: Identify the unknowns with the aid of diagram. Step 2: Identify the objective function, the quantity to maximize or minimize. Step 3: Identify the constraint, the equations relating variables or inequalities expressing limitations on the value of the variables. Step 4: State the optimization problem Step 5: Eliminate the extra variables, solve the constraint for one unknown and substitute in the objective function. Step 6: Find the absolute maximum or absolute minimum of the objective function. Calculation: As it is provided that the company’s marketing analysts estimate that if it delays t days, it can set the price at, 100 + 2 t Dollars. Also, the longer it delays, the more market share it will lose, so if it delays t days it will be able to sell, 400 , 000 − 2500 t Copies of the program. Now, the total revenue will be the price generated by the product times its market share at time t , so, R ( t ) = ( 100 + 2 t ) ( 400 , 000 − 2500 t ) = 40 , 000 , 000 + 550 , 000 t − 5 , 000 t 2 Now, as the revenue has to be maximized, so the objective function is R ( t

Finite Mathematics and Applied Calculus (MindTap Course List)

7th Edition

ISBN: 9781337274203

Author: Stefan Waner, Steven Costenoble

Publisher: Cengage Learning

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Chapter 12.2, Problem 59E

To determine

To calculate: The number of days that Feature Rich should delay the release to get greatest revenue if the company’s marketing analysts estimate that if it delays t days, it can set the price at 100+2t dollars. Also, the longer it delays, the more market share it will lose, so if it delays t days it will be able to sell 400,000−2500t copies of the program.

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Chapter 12.2, Problem 58E

Chapter 12.2, Problem 60E

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Solution Summary: The author calculates the number of days that Feature Rich should delay the release to get greatest revenue.

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