Find the subscription price that maximizes profit

Reference no: EM131358491

Q1. An oil spill has fouled 200 miles of Pacific shoreline. The oil company responsible has been given 14 days to clean up the shoreline, after which a fine will be levied in the amount of $10,000/day. The local cleanup crew can scrub five miles of beach per week at a cost of $500/day. Additional crews can be brought in at a cost of $18,000 plus $800/day for each crew.

How many additional crews should be brought in to minimize the total cost to the company? Use the five-step method. How much will the clean-up cost?

Q2. A local daily newspaper with a circulation of 80,000 subscribers is thinking of raising its subscription price. Currently the price is $1.50 per week, and it is estimated that the paper would lose 5,000 subscribers if the rate were to be raised by ten cents/week.

Find the subscription price that maximizes profit. Use the five-step method, and model as a one-variable optimization problem.

Reference no: EM131358491

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len1358491

1/18/2017 5:11:03 AM

Hi, I need help solving problems. Pages 17-18, Questions: 4a and 9a. See book. Textbook – Mathematical Modeling, Fourth Edition by Mark M. Meerschaert. How many additional crews should be brought in to minimize the total cost to the company? Use the five-step method. How much will the clean-up cost?

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