Answer:
The optimum price to sell the app is $2.55
Step-by-step explanation:
Modeling With Functions
The equation of the demand for the app store is given by
U=10000-2000P
Where U is the number of units sold and P is the price for each unit.
a.
The money from sales (Revenue) is U times the price of each unit, so
[tex]S=U.P[/tex]
Using the equation above
[tex]S=(10000-2000P).P=10000P-2000P^2[/tex]
b. The upfront costs function is given by
[tex]C=2000+0.1U[/tex]
Again, we use the equation for U
[tex]C=2000+0.1(10000-2000P)[/tex]
[tex]C=2000+1000-200P[/tex]
[tex]C=3000-200P[/tex]
c.
The profit is the sales minus the cost
[tex]Profic=S-C=10000P-2000P^2-(3000-200P)[/tex]
[tex]Profit=10000P-2000P^2-3000+200P[/tex]
[tex]Profit=-2000P^2+10200P-3000[/tex]
d.
The vertex of a quadratic function shown as
[tex]f(x)=ax^2+bx+c[/tex]
has an x-coordinate equal to
[tex]\displaystyle x=-\frac{b}{2a}[/tex]
The optimum price for selling the app can be found in the vertex of the above equation.
The P-coordinate of the vertex is given by
[tex]\displaystyle x=-\frac{10200}{-4000}=2.55[/tex]
The optimum price to sell the app is $2.55
