Use the demand function to write cost and revenue functions of p.
Not what you're looking for?
A health club has cost and revenue functions given by C = 10,000 + 35q and R = pq, where q is the number of annual club members and p is the prices of a one year membership. The demand function for the club is q = 3000 - 20q.
a. Use the demand function to write cost and revenue functions of p.
b. Graph cost and revenue as a function of p, on the same axes. (Note that price does not go above $170 and that the annual costs of running the club reach $120,000.)
c. Explain why the graph of the revenue function has the shape it does.
d. For what prices does the club make a profit?
e. Estimate the annual membership fee that maximizes profit. Mark this point on your graph.
Purchase this Solution
Solution Summary
This solution carefully graphs cost and revenues as a function of p, on the same axes.
Solution Preview
** Please see the attached file for a Word formatted copy of the solution **
a. Use the demand function to write cost and revenue functions of p.
I guess the demand function should be:
q = 3000 - 20p
Therefore,
C = 10000 + 35q = 10000 + 35 *(3000 - 20p) = 10000 + 105000 - 700p = 115000 - 700p
R = pq = p ...
Purchase this Solution
Free BrainMass Quizzes
Multiplying Complex Numbers
This is a short quiz to check your understanding of multiplication of complex numbers in rectangular form.
Probability Quiz
Some questions on probability
Geometry - Real Life Application Problems
Understanding of how geometry applies to in real-world contexts
Know Your Linear Equations
Each question is a choice-summary multiple choice question that will present you with a linear equation and then make 4 statements about that equation. You must determine which of the 4 statements are true (if any) in regards to the equation.
Solving quadratic inequalities
This quiz test you on how well you are familiar with solving quadratic inequalities.