A football team charges $30 per ticket and averages 20,000 people per game. Each person spend an average of $8 on concessions.Fo
r 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.
The ticket price that would maximize the total revenue would be $ 23.
Given 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
28,000 x 20 + 28,000 x 8 = 784,000
26,000 x 22.5 + 26,000 x 8 = 793,000
27,200 x 21 + 27,200 x 8 = 788,000
26,400 x 22 + 26,400 x 8 = 792,000
25,600 x 23 + 25,600 x 8 = 793,600
24,800 x 24 + 24,600 x 8 = 792,000
Therefore, the ticket price that would maximize the total revenue would be $ 23.
