Business, 04.06.2020 13:13 mel8260

The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera A Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships between the quantity sold (N) and prices (P) of each model: NA = 195 - 0.5PA + 0.35PB

NB = 300 + 0.06PA - 0.5PB

Construct a model for the total revenue and implement it on a spreadsheet. Develop two-way data table to estimate the optimal prices for each product in order to maximize the total revenue. Vary each price from $250 to $500 in increments of $10.

Max profit occurs at Camera A price of $ .

Max profit occurs at Camera B price of $

Answers: 1

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Answers

Answer from: jashaikamatuteowwp1p

Max Revenue (not necessarily profit) occurs at Camera A price of $380

Max Revenue (not necessarily profit) occurs at Camera B price of $460

Explanation:

Assuming prices varying between $250 to $500 with $10 intervals, the total revenues of camera A are shown below:

Statement showing maximum reveue of Camera A

Price -A250260270280290300310320330340350360370380390400410420430440450460470480490500

Price B

25026875263902578525060242152325022165209601963518190166251494013135112109165700047152310-215-2860-5625-8510-11515-14640-17885-21250

260275002704026460257602494024000229402176020460190401750015840140601216010140800057403360860-1760-4500-7360-10340-13440-16660-20000

2702812527690271352646025665247502371522560212851989018375167401498513110111159000676544101935-660-3375-6210-9165-12240-15435-18750

28028750283402781027160263902550024490233602211020740192501764015910140601209010000779054603010440-2250-5060-7990-11040-14210-17500

290293752899028485278602711526250252652416022935215902012518540168351501013065110008815651040851540-1125-3910-6815-9840-12985-16250

3003000029640291602856027840270002604024960237602244021000194401776015960140401200098407560516026400-2760-5640-8640-11760-15000

31030625302902983529260285652775026815257602458523290218752034018685169101501513000108658610623537401125-1610-4465-7440-10535-13750

32031250309403051029960292902850027590265602541024140227502124019610178601599014000118909660731048402250-460-3290-6240-9310-12500

330318753159031185306603001529250283652736026235249902362522140205351881016965150001291510710838559403375690-2115-5040-8085-11250

3403250032240318603136030740300002914028160270602584024500230402146019760179401600013940117609460704045001840-940-3840-6860-10000

35033125328903253532060314653075029915289602788526690253752394022385207101891517000149651281010535814056252990235-2640-5635-8750

360337503354033210327603219031500306902976028710275402625024840233102166019890180001599013860116109240675041401410-1440-4410-7500

3703437534190338853346032915322503146530560295352839027125257402423522610208651900017015149101268510340787552902585-240-3185-6250

3803500034840345603416033640330003224031360303602924028000266402516023560218402000018040159601376011440900064403760960-1960-5000

390356253549035235348603436533750330153216031185300902887527540260852451022815210001906517010148351254010125759049352160-735-3750

400362503614035910355603509034500337903296032010309402975028440270102546023790220002009018060159101364011250874061103360490-2500

4103687536790365853626035815352503456533760328353179030625293402793526410247652300021115191101698514740123759890728545601715-1250

420375003744037260369603654036000353403456033660326403150030240288602736025740240002214020160180601584013500110408460576029400

430381253809037935376603726536750361153536034485334903237531140297852831026715250002316521210191351694014625121909635696041651250

4403875038740386103836037990375003689036160353103434033250320403071029260276902600024190222602021018040157501334010810816053902500

4503937539390392853906038715382503766536960361353519034125329403163530210286652700025215233102128519140168751449011985936066153750

46040000400403996039760394403900038440377603696036040350003384032560311602964028000262402436022360202401800015640131601056078405000

47040625406904063540460401653975039215385603778536890358753474033485321103061529000272652541023435213401912516790143351176090656250

480412504134041310411604089040500399903936038610377403675035640344103306031590300002829026460245102244020250179401551012960102907500

490418754199041985418604161541250407654016039435385903762536540353353401032565310002931527510255852354021375190901668514160115158750

5004250042640426604256042340420004154040960402603944038500374403626034960335403200030340285602666024640225002024017860153601274010000

Max Revenue (not necessarily profit) occurs at Camera A price of $380

Max Revenue (not necessarily profit) occurs at Camera B price of $460

Answer from: Quest

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to

Answer from: Quest

General education? that is the only one i could think of.

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The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera A Price...

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