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Sonja [21]
3 years ago
11

The average ticket price for a concert at the opera house was ​$50. The average attendance was 2500. When the ticket price was r

aised to ​$54​, attendance declined to an average of 2100 persons per performance. What should the ticket price be to maximize revenue for the opera​ house?
Business
1 answer:
Ber [7]3 years ago
6 0

Answer:

The price per ticket should be $37.5

Explanation:

First we need to determine the change in demand (attendance) as a result of every $1 increase in the price of ticket.

The ticket price increased by $4 (from 50 to 54) and the demand fell by 400 (from 2500 to 2100). The change per dollar is,  400 / 4 = 100.

So, for every $1 increase in price, demand falls by 100.

The revenue is calculated by multiplying price by quantity demanded. Revenue equation will be,

Let x be the change in price from $50.

Revenue = (50 + x)  * (2500 - 100x)

Revenue = 125000 - 5000x + 2500x - 100x²

Revenue = 125000 - 2500x - 100x²

To calculate the price that maximizes the revenue, we need to take the derivative of this equation.

d/dx = 0 - 1 * 2500x° - 2 * 100x

0 = -2500  -  200x

2500 = -200x

2500 / -200 = x

-12.5 = x

Price should be 50 - 12.5 = 37.5

At price $37.5 the revenue of the Opera House is maximized.

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A) As the company will do a cash dibursement will be considered cash use and because is investing on it to increase future cash flow

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8 0
3 years ago
The government of Ugania had been extending huge amounts of loans to the business enterprises in the country. However, the borro
coldgirl [10]

Answer:

b) economic

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Economic risk can be described as the probability that investment in the home country will be affected by changes in exchange rates, a political instability, a change in government regulation or policy, or any other macroeconomic conditions especially in a foreign country.

Despite that the government of Ugania has been trying to stimulate its economy extending huge amounts of loans to the business enterprises in the country, the failure to generate the profits necessary to repay their debts by borrowers likely due to be that the business enterprises in Ugania are most likely to facing economic risk.

7 0
3 years ago
Specialists in which field assess and mitigate workplace hazards, such as issuing ear protection to workers in factories with hi
ira [324]

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The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ende
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Answer:

Results are below.

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COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 30,000 + 100,000 - 40,000

COGS= 90,000

<u>Now, the number of skis sold:</u>

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4 0
3 years ago
One day, a local theme park charges $40 per person for admission, and 10,000 people visit the park. On another day, the park cha
slega [8]

Answer:

The low-attendance day falls on an autumn Wednesday, while the high-attendance day falls on a summer Saturday.

Explanation:

There are no rare class of goods which do not follow the Law of Demand

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8 0
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