A university is trying to determine what price to charge for tickets to football games. At a price of
What is the price per ticket?
What is the average attendance?
people
Final Answer: The price per ticket that should be charged in order to maximize revenue is
Step 1 :A university is trying to determine what price to charge for tickets to football games. At a price of
Step 2 :The revenue from ticket sales is the product of the price per ticket and the number of tickets sold. The revenue from concessions is the product of the number of people attending and the average amount spent on concessions. The total revenue is the sum of these two amounts. We need to find the price per ticket that maximizes this total revenue.
Step 3 :We can express the number of people attending as a function of the price per ticket. If we let
Step 4 :The revenue from ticket sales is then
Step 5 :After calculating the total revenue for different ticket prices, we find that the maximum revenue is
Step 6 :Final Answer: The price per ticket that should be charged in order to maximize revenue is