Question

A cable TV company has 5200 customers paying $55 each month. If
each $1 reduction in price attracts 100 new customers,

find the price that yields maximum revenue.

$

Find the maximum revenue.

$

Answer #1

A large cable company reports the following. 80% of its
customers subscribe to its cable TV service 38% of its customers
subscribe to its Internet service 31% of its customers subscribe to
its telephone service 23% of its customers subscribe to both its
cable TV and Internet service 19% of its customers subscribe to
both its cable TV and phone service 22% of its customers subscribe
to both its Internet and phone service 15% of its customers
subscribe to all...

1) A cable company currently
charges $105/month and has 4800 customers. They decide that for
every $2 increase in price they will lose 75 customers. What price
should they set in order to maximize revenue? Please show all
steps

The number of subscribers in a small community to a cable TV
provider company is linearly related to the price. If the rental
price is $30, there will be 5 thousand subscribers, but if the
price is raised to $35 there will be a decrease of 1 thousand
subscribers. Suppose the current price is $30, and the price is
rising at $1.00 per month. Find the rate at which the revenue is
changing at this time.

A company produces a special new type of TV. The company has
fixed costs of $488,000 and it costs $1500 to produce each TV.
The company projects that if it charges a price of $2200 for the
TV, it will be able to sell 850 TVs. If the company wants to sell
900 TVs, however, it must lower the price to $1900 Assume a
linear demand. What price should be set to earn maximum profits?
It is $_____ per TV

A company produces a special new type of TV. The company has
fixed costs of $492,000, and it costs $1300
to produce each TV. The company projects that if it charges a
price of $2600 for the TV, it will be able to sell 750 TVs. If the
company wants to sell 800
TVs, however, it must lower the price to $2300.
Assume a linear demand.
How many TVs must the company sell to earn $2,090,000 in
revenue?

A cable company spends on average $600 to acquire a customer.
Over time, 80% of customers remain with the company from one year
to the next. The discount rate is 12%. Costs to serve each customer
are: annual maintenance costs - $45; annual record-keeping and
billing costs - $30. Revenue is as follows:
Price per Month
% of Customers
Basic Service
$30
50%
Premium Service
$50
40%
Super Premium Service
$80
10%
What is the annual profit margin for an...

A company produces a special new type of TV. The company has
fixed costs of $466,000 and it costs $1200 to produce each Tv the
company projects that if it charges a price of 2200 for the TV it
will be able to sell 800 TVs. If the company wants to sell 850 Tvs
however, it must lower the price to $1900.
Assume a linear demand.
How many TVs must the company sell to earn 2,040,000 in
revenue?
It needs...

The C&D TV store currently has
fixed costs of $6,000 per month and $400 per TV set. Their sales
price for the TV sets is $700 each, and their current volume is 25
sets per month.
a) Find C&D’s break-even point and their NOI and DOL at the
current level of sales (20 units per month, NOI=$1,500, and
DOL=5).
b) Find C&D’s break-even point and their NOI and DOL if fixed
costs decrease to $4,750 and at the...

PT. MEREKAH is a sole provider of internet cable in BSD. This
company levies a price
discrimination policy for the consumers who live in three different
areas.
Area 1: P = 100 - 8Q
Area 2: P = 60 - 4Q
Area 3: P = 80 -12Q
The cost function for this company is given by TC = 30 +4Q. As an
economist, you are
assigned to calculate some basic information below:
a) Find the function of Total Revenue &...

A company produces a special new type of TV. The company has
fixed costs of
$471,000 and it costs $1200 to produce each TV. The company
projects that if it charges a price of
$2300 for the TV, it will be able to sell 700 TVs. If the
company wants to sell
750 TVs, however, it must lower the price to $2000 Assume a
linear demand.
What price should the company charge to earn a profit of
$679,000

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