H D
Maximize tetal contribution = revenue - east Case 2: Max revenues
Revenue = p d(p)
Ceet = c d(p) |
LOGIT PRF
Demand fu netien: d(p)=C exp(-(a+bp).~" [1+exp(-(a+bp)]
Parameters
C 1000 Given
a -5 Given
b 1 Given
Unit variable cost 5|Given
Deeiaian

A E L
vlaximize total contribution = revenue - coat Case 2: Max revenues, P>=VC
Revenue = p dcfw_p)
Boat = c d(p)
-0G IT PRF
Demand iu nction: d(p)=C exp(-cfw_a+bp) r [1+expcfw_-cfw_a+bp)]
Darametere
3 1000 Given
a -5 Given
J 1 Given
Jnit variable cos

Maximize total contribution = revenue - oost Case 1: Max profits
Revenue = p d(p)
Cost = o d(p)
LOGIT PRF
Demand fu notion: d(p)=C expcfw_-(a+bp) I [1+exp(-(a+bp)]
Parameters
C 1000 Given
a -5 Given
b 1 Given
Unit variable cost 5|Given
Daoision variable [