Question

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 1

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.

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