Question

Coastal Soda Sales has been granted exclusive market rights to the upcoming Beaufort Seafood Festival. This means that during the festival Coastal will have a monopoly, and it is anxious to take advantage of this position in its pricing strategy. The daily demand function is $p = 2 - 0.0004x$ and the daily total cost function is $C(x) = 600 + 0.2x + 0.0001x^2$ where $x$ is the number of units. (a) Determine Coastal's total revenue, $R(x)$, and profit functions, $P(x)$, in dollars. $R(x) = $ $P(x) = $ (b) What profit-maximizing price per soda should Coastal charge? $\ per soda How many sodas per day would it expect to sell at this price? sodas per day What would be the daily profits? $\ per day (c) If the festival organizers wanted to set an economically efficient price of $1.25 per soda, how would this change the results from part (b)? (Round your answer for daily profits to the nearest cent.) sodas per day it would expect to sell daily profits $\ per day

          Coastal Soda Sales has been granted exclusive market rights to the upcoming Beaufort Seafood Festival. This means that during the festival Coastal will have a monopoly, and it is anxious to take advantage of this position in its pricing strategy. The daily demand function is
$p = 2 - 0.0004x$
and the daily total cost function is
$C(x) = 600 + 0.2x + 0.0001x^2$
where $x$ is the number of units.
(a) Determine Coastal's total revenue, $R(x)$, and profit functions, $P(x)$, in dollars.
$R(x) = $
$P(x) = $
(b) What profit-maximizing price per soda should Coastal charge?
$\ 
per soda
How many sodas per day would it expect to sell at this price?
 sodas per day
What would be the daily profits?
$\ 
per day
(c) If the festival organizers wanted to set an economically efficient price of $1.25 per soda, how would this change the results from part (b)? (Round your answer for daily profits to the nearest cent.)
sodas per day it would expect to sell
daily profits
$\ 
per day

Coastal Soda Sales has been granted exclusive market rights to the upcoming Beaufort Seafood Festival. This means that during the festival Coastal will have a monopoly, and it is anxious to take advantage of this position in its pricing strategy. The daily demand function is
p = 2 - 0.0004x
and the daily total cost function is
C(x) = 600 + 0.2x + 0.0001x^2
where x is the number of units.
(a) Determine Coastal's total revenue, R(x), and profit functions, P(x), in dollars.
R(x) =
P(x) =
(b) What profit-maximizing price per soda should Coastal charge?
per soda
How many sodas per day would it expect to sell at this price?
sodas per day
What would be the daily profits?
per day
(c) If the festival organizers wanted to set an economically efficient price of 1.25 per soda, how would this change the results from part (b)? (Round your answer for daily profits to the nearest cent.)
sodas per day it would expect to sell
daily profits
per day

Added by Alicia L.

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