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3 years ago

Given the following Demand Curve: P = 24 - 8Q

Mathematics

1 answer:

KatRina [158]3 years ago

4 0

Answer:

Maximum value of total revenue = 18

Step-by-step explanation:

Express this Demand Curve in terms of Q.

P = 24 - 8Q (it is the same equation)

Find P, if Q=2

P= 24-8(2)

P=24-16

P=8

Find Q if P = 8.

P = 24 - 8Q

8= 24 - 8Q

8Q= 24-8

8Q=16

Q=16/8

Q=2

Total revenue in terms of Q

Total revenue is P times Q, that is

P*Q=TR=(24-8Q)*Q

TR=24Q-8Q^2

$TR=24Q-8Q^{2} \\\\$

Marginal Revenue

It is the first derivative of TR

TR'(Q)= 24-16Q

Find the values of P and Q that will maximize total revenue.

To find them first TR'(Q)=0, that is

0=24-16Q

16Q=24

Q=24/16

Q=3/2

Q=1.5

and we plug in 1.5 in P=24-8Q, which is,

P=24-8Q

P=24-8(1,5)

P=24-12

P=12

Calculate this maximum value of total revenue

P=12 Q=1.5

P*Q=Total Revenue

12*1.5=Total Revenue

18=Total Revenue

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3 years ago

Solve each system using substitution or additions (elimination). -x+2y=-1 5x-10y=6

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Answer:

Step-by-step explanation:

L1 -x + 2y = -1

L2 5x - 10y = 6

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2 years ago

A couple book a cruise to Alaska that promises to refund 100 per day of rain on the seven day cruise up to a maximum of 300. The

zubka84 [21]

Answer:

the variance of the refund payment to the couple = 9463.394

Step-by-step explanation:

Given that :

A couple book a cruise to Alaska that promises to refund 100 per day of rain on the seven day cruise up to a maximum of 300.

It is possible that the couple won't be able to refund up 100 per day or more than 100 per day.

SO; let assume that the refund payment happens to be 0, 100,200, 300

Let X be the total refund payment on the seven day cruise.

We can say X = 0, if there is no rain on all 7 days.

$P(X = 0) = _nC_x * P^x * (1 - P)n-x$

$P(X = 0) = _7C_o * 0.2^0 * (1-0.2)^{7-0$

$P(X = 0) =1 * 1* (1-0.2)^{7$

$P(X = 0) =(0.8)^{7$

$P(X = 0) =0.2097152$

If it rains on any one day; then X = 100

$P(X = 100) = _nC_x * P^x * (1 - P)n-x$

$P(X = 100) = _7C_1 * 0.2^1 * (1-0.2)^{7-1$

$P(X = 0) =7 * 0.2* (1-0.2)^{6$

$P(X = 100) =7* 0.2* (0.8)^{6$

$P(X = 100) =0.3670016$

if it rains on any two day ; then X = 200

$P(X = 200) = _nC_x * P^x * (1 - P)n-x$

$P(X = 200) = _7C_2 * 0.2^2 * (1-0.2)^{7-2$

$P(X = 200) = 21 * 0.2^2 * (0.8)^{5$

$P(X = 200) = 0.2752512$

if it rains on any three day or more than that ; then X = 300

$P(X \ge 300) = 1 - P(X < 300) \\ \\ P(X \ge 300) = 1 - [P(X = 0) + P(X = 100) + P(X = 200)] \\ \\ P(X \ge 300) = 1 - [0.2097152 + 0.3670016 + 0.2752512] \\ \\ P(X \ge 300) = 0.148032$

Now; we have our probability distribution function as:

P(X = 0) = 0.2097152

P(X = 100) = 0.3670016

P(X = 200) = 0.2752512

P(X = 300) = 0.148032

In order to determine the variance of the refund payment to the couple; we use the formula:

variance of the refund payment to the couple $[Var X] =E [X^2] - (E [X])^2$

where;

$E[X^2] = \sum x^2 \times p \\ \\ E[X^2] = 0^2 * 0.2097152 + 100^2 * 0.3670016 + 200^2 * 0.2752512 + 300^2 * 0.148032 \\ \\ E[X^2] = 0 + 3670.016 + 11010.048+ 13322.88 \\ \\ E[X^2] =28002.944$

$(E [X]) = \sum x * p\\ \\ (E [X]) = 0 * 0.2097152 + 100 * 0.3670016 + 200 * 0.2752512 + 300 * 0.148032 \\ \\ (E [X]) = 0 + 36.70016 + 55.05024 + 44.4096\\ \\ (E [X]) = 136.16 \\ \\ (E [X])^2 = 136.16^2 \\ \\ (E [X])^2 = 18539.55$

NOW;

the variance of the refund payment to the couple = 28002.944 - 18539.55

the variance of the refund payment to the couple = 9463.394

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3 years ago

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