Asked by
Kitti-Talei Drodrolagi
on Dec 01, 2024
Verified
In the same football conference there is another university where the demand for football tickets at each game is 100,000 - 8,000p.If the capacity of the stadium at that university is 60,000 seats, what is the revenue-maximizing price for this university to charge per ticket?
A) $6.25
B) $5
C) $12.50
D) $3.13
E) $18.75
Revenue-maximizing Price
The price level at which a company can generate the maximum total revenue, balancing between price per unit and the quantity sold.
Football Tickets
Certificates that allow admission to watch a football game.
Demand Function
A mathematical representation that describes the relationship between the quantity of a good or service demanded and its price, among other factors.
- Decode the subject of demand functions and their way of being interpreted.
- Understand the concept of revenue maximization for firms and calculate optimal pricing.
Verified Answer
LI
Learning Objectives
- Decode the subject of demand functions and their way of being interpreted.
- Understand the concept of revenue maximization for firms and calculate optimal pricing.