Revenue and profit functions. A company manufactures 10- and 3-speed bicycles. The weekly demand and cost functions are p = 230 − 9 x + y q = 130 + x − 4 y C ( x , y ) = 200 + 80 x + 30 y where $ p is the price of a 10-speed bicycle. $ q is the price of a 3-speed bicycle, x is the weekly demand for 10-speed bicycles, y is the weekly demand for 3-speed bicycles, and C ( x , y ) is the cost function. Find R x ( 10, 5) and P x (10, 5), and interpret the results.
Revenue and profit functions. A company manufactures 10- and 3-speed bicycles. The weekly demand and cost functions are p = 230 − 9 x + y q = 130 + x − 4 y C ( x , y ) = 200 + 80 x + 30 y where $ p is the price of a 10-speed bicycle. $ q is the price of a 3-speed bicycle, x is the weekly demand for 10-speed bicycles, y is the weekly demand for 3-speed bicycles, and C ( x , y ) is the cost function. Find R x ( 10, 5) and P x (10, 5), and interpret the results.
Solution Summary: The author calculates the value of R_x(10,5)=60, which means the company revenue will increase 60 when the weekly demand for 10-speed bicycles x increases-
Revenue and profit functions. A company manufactures 10- and 3-speed bicycles. The weekly demand and cost functions are
p
=
230
−
9
x
+
y
q
=
130
+
x
−
4
y
C
(
x
,
y
)
=
200
+
80
x
+
30
y
where $p is the price of a 10-speed bicycle. $q is the price of a 3-speed bicycle, x is the weekly demand for 10-speed bicycles, y is the weekly demand for 3-speed bicycles, and C(x, y) is the cost function. Find Rx( 10, 5) and Px(10, 5), and interpret the results.
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