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-Dominant- [34]
2 years ago
6

Many times business will raise the prices of their goods

Mathematics
1 answer:
hjlf2 years ago
7 0

The price that will maximize profit is $ 5.50.

Since an auditorium has seats for 1200 people, and for the past several days, the auditorium has been filled to capacity for each show, and tickets currently cost $ 5.00 and the owner wants to increase the ticket prices, and he estimates that for each $ 0.50 increase in price, 100 fewer people will attend, to determine which is the price that will maximize profit, the following calculation must be made:

  • 1200 x 5 = 6000
  • 1100 x 5.5 = 6050
  • 1000 x 6 = 6000

Therefore, the price that will maximize profit is $ 5.50.

Learn more in brainly.com/question/25313241

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