Question

When a baseball park owner charges $3.00 for admission, there is an average attendance of 100 people. For every $0.10 increase in the admission price, there is a loss of 2 customers from the average number.
1. What admission price should be charged in order to maximize revenue?2. What is the maximum revenue?

Answer 1

Answer:

$1

max rev = 80(4) = $320

Step-by-step explanation:

let us do this in pennies  

R = (100 - x/5)(300 + x)

d/dr = -2x - 200

               5

(-2x-200)/5 = 0  

-2x = 200

x = 100