Coastal Soda Sales has been granted exclusive market rights tothe upcoming Beaufort Seafood Festival. This means that during thefestival Coastal will have a monopoly, and it is anxious to takeadvantage of this position in its pricing strategy. The dailydemand function is
p = 2 − 0.0004x
and the daily total cost function is
C(x) = 800 + 0.2x + 0.0001x2
where x is the number of units.
(a) Determine Coastal's total revenue and profit functions.
(b) What profit-maximizing price per soda should Coastalcharge?
$Ă‚Â Ă‚Â per soda
How many sodas per day would it expect to sell at this price?
sodas per day
What would be the daily profits?
$Ă‚Â Ă‚Â per day
(c) If the festival organizers wanted to set an economicallyefficient price of $1.25 per soda, how would this change theresults from part (b)? (Round your answer for daily profits to thenearest cent.)
| sodas per day it would expect tosell    | | sodas per day |
| daily profits    | $ | per day |
