A theater determine that if the admission price is $30, it averages 400 people in attendance. But for every increase of $2, it loses 20 customers from the average number. Every customer spends an average of $2 on concessions. What admission price should the theater charge in order to maximize the revenue?
A theater determine that if the admission price is $30, it averages 400 people in attendance. But for every increase of $2, it loses 20 customers from the average number. Every customer spends an average of $2 on concessions. What admission price should the theater charge in order to maximize the revenue?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter12: More Realistic And Complex Pricing
Section: Chapter Questions
Problem 8MC
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A theater determine that if the admission price is $30, it averages 400 people in attendance. But for every increase of $2, it loses 20 customers from the average number. Every customer spends an average of $2 on concessions. What admission price should the theater charge in order to maximize the revenue?
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