Determine the optimal price to charge adults and students

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Reference no: EM13733850

Promoters of a major college basketball tournament estimate that the demand for tickets on the part of adults is given by Q_ad = 5,000 ? 10P, and that the demand for tickets on the part of students is given by Q_st= 10,000 ? 100P. The promoters wish to segment the market and charge adults and students different prices. They estimate that the marginal and average total cost of seating an additional spectator is constant at $10. Determine the optimal price to charge adults and students.

Adults pay $255 each; students pay $55

Each Adults pay $215 each; students pay $65

Each Adults pay $275 each; students pay $75

Each Adults pay $300 each; students pay $85 each.

Reference no: EM13733850

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