if i can get some help working on these problems. that would be appreciated
The revenue from a companys
socks is a function of the price they charge. The price
they can charge is a function of demand. Currently the
demand is dropping at a rate of 1000 ringtones per day.
The marginal price (as a function of demand) currently is
$.00001 per extra ringtone demanded .
What is the current marginal price as a function
if the current price of socks is $1.13 and the
current demand is 5000 socks, then
what is the current marginal revenue as a
function of time? use aswer for number one
Please check my answer!
Do you know the answer now? I am just trying to do some math problems. Not sure of the answer. Please post your answer.
1. current marginal price as function of time is (-1000 demand/day)($0.00001/demand)=-$0.01/day
2. 5000 demand/dayx$0.0001/demand=$0.05/day
current marginal revenue is$0.05-$0.01=$0.04
Ok, is the wording correct for the first one? It says something about socks and then something about ringtones. LOL Can you clarify what the first part of this problem is? I can walk you through setting this up, but want to make sure I have the correct data before I do that.
Originally Posted by icecalc99