Revenue.(A) Using the price–demand functionfrom Problem 1, write the company’s revenue fun...

Revenue.

(A) Using the price–demand function

from Problem 1, write the company’s revenue function and indicate its domain.

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(B) Complete Table 1, computing revenues to the nearest million dollars.

Table 1 Revenue

x (millions)	R(x) (million $)
1	72
4
8
12
16
20

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(C) Plot the points from part (B) and sketch a graph of the revenue function using these points. Choose millions for the units on the horizontal and vertical axes.

Problem 1

Price–demand. A company manufactures memory chips for microcomputers. Its marketing research department, using statistical techniques, collected the data shown in Table 2, where p is the wholesale price per chip at which x million chips can be sold. Using special analytical techniques (regression analysis), an analyst produced the following price–demand function to model the data:

Table 2 Price–Demand

(A) Plot the data points in Table 2, and sketch a graph of the price–demand function in the same coordinate system.

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(B) What would be the estimated price per chip for a demand of 7 million chips? For a demand of 11 million chips?