Question

the manager of a symphony computes that the symphony will earn -40p^2+1100p dollars per concert if they charge P dollars for tickets. what ticket price should the symphony charge in order to maximize its profits?

Answer 1

Answer:

$7,562.5

Step-by-step explanation:

Given the function of the profit earned expressed as;

f(p) =-40p^2+1100p

To maximize the profit, df(p)/dp must be sero

df(p)/dp = -80p + 1100 = 0

-80p + 1100 = 0

-80p = - 1100

p = 1100/80

p = 13.75

Substitute p = 13.75 into the function

f(13.75) =-40(13.75)^2+1100(13.75)

f(13.75) = -7,562.5+15,125

f(13.75) = 7,562.5

Hence the symphony should charge $7,562.5 to maximize the profit.