I wrote it as if I am speaking to our boss, Mr. Solheid, at CableWorld….

Roxanne Silva Veronica Ramirez Professor Solheid Math 135 MWF 9:00-9:50 am Mr. Solheid we have very exciting news! Mayor Milton Gordon of Titanland has given us the opportunity for CableWorld to offer our cable T.V. service to its residents! Our company’s researchers and economists have immediately gone to work and have done a comprehensive analysis on our new prospective market available in Titanland. In the following analysis, we utilize a scenario assuming that in Titanland, there are one hundred homes that are potential customers that would be interested in buying our service. Out of those one hundred customers, fifty customers live in homes, and the other fifty customers live in apartments. The breakdown consists of: • A study combining the demand of both homes and apartments to figure out how many families would be willing to buy a cable T.V. hookup if we charge a price p per month • A study of revenue R(p), by multiplying a price per hookup times the number of hookups • A study of costs • A study of profits • • • For Step 1: We began by studying the demand within the household sector and the demand within the apartment sector. Then, we combined both demands and interpreted it through a piece-wise demand function. This demand function was utilized in order to look at how our prices would change for every fiftieth apartment and home. A visual representation of the combined demand is shown below: somewhere in this paragraph you might want to display the demand function Nh(p) (identify it as houses), and the demand function Na(p) (identify it as apartments), then the combined demand function N(p) = Nh(p) + Na(p) (but in the piece-wise form). Space for the graph (remember to title it and label axis) and table of values Maybe below the graph you want to point out different aspects of the graph like what does it mean if the curve is decreasing, where it begins and ends, where you see a significant change if any, (everything in context of the problem, not just throw values without explaining what it means) For Step 2: Next, to compute CableWorld’s potential revenue, we used different values that would fall within each range of the combined demand function in order to substitute in for price per hookup and for number of hookups. Our economists

discovered a formula in presentation of how to calculate CableWorld’s revenue: R(p) = (price per hookup)(number of hookups) = p N(p) Space for the graph (remember to title it and label axis) and table of values Maybe below the graph you want to point out different aspects of the graph like what does it mean if the curve or line increasing or decreasing, where it begins and ends, where you see a significant change if any, (everything in context of the problem, not just throw values without explaining what it means)

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