Question

Problem 8-03 Jim’s Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows: DS = demand for the Sky Eagle, PS is the selling price of the Sky Eagle, DH is the demand for the Horizon, and PH is the selling price of the Horizon. DS = 222 – 0.60PS + 0.35PH DH = 270 + 0.10PS – 0.64PH The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these two models. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank.

The revenue function is:

Max -0.6  P_S² + 222 P_S + 0.45  P_SP_H + 270 P_H + -0.64  P_H²

PS = $ (304.20 IS MARKED WRONG FOR THIS ANSWER)

PH = $ (317.88 IS MARKED WRONG FOR THIS ANSWER)

Optimal revenue = $ 76681.48

Answer 1

DS 222 0.6 PS 0.33PH Revenuしっps.rg.+Pn.PH + 0-1 PS.PH ー0.64 p㎡- maximi a even ill丿difte entiate the 四、一 dCPM)