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A football team charges $30 per ticket and averages 20,000 people per game. Each person spend an average of $8 on concessions.For everydrop of $1 in price,the attendance rises by 800 people.What ticket price should the team charge to maximize total revenue? Calculate the TR max.

Answer :

FRANCOCANACARIIN

The  price that would maximize total revenue would be $ 23.

As long as that a football team charges $ 30 per ticket and averages 20,000 people per game, and each person spend an average of $ 8 on concessions, and for every drop of $ 1 in price, the attendance rises by 800 people, to determine what ticket price should the team charge to maximize total revenue, the following calculation must be performed:

  • 20,000 x 30 + 20,000 x 8 = 760,000
  • 24,000 x 25 + 24,000 x 8 = 792,000
  • 24,800 x 24 + 24,600 x 8 = 792,000
  • 25,600 x 23 + 25,600 x 8 = 793,600  
  • 26,400 x 22 + 26,400 x 8 = 792,000

Therefore, the ticket price that would maximize the total revenue would be $ 23.

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