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You are given two points representing the number of items sold at a particular price. From these two points a linear demand functions is constructed. You are also given information on the cost of each item so that you can construct a cost function. From the demand function you can form a revenue function and finally the profit function is the revenue minus the cost. This profit function can the be maximized by taking the derivative at setting it to zero.
Until recently. hamburgers at the city specs arena cost $5.40 each The food concessionaire sold an average of 4.000 hamburgers on game night. When the price was raised to $6.00. hamburger sales dropped off to an average of 2.500 pa right
(a) Assailing a firer demand ant, find the price of a hamburger that will maximize the rightly hamburger revenue.
(b) If the concessionaie had fixed costs of SIX* per right and the variable cost is $0.40 pa hamburger. Find the price of a lumburga that will manmze the nightly hamburger profit.
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