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What is the optimal price that maximizes total revenue

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Reference no: EM133082001

Selling the bleacher seatsAttendance = 1500 - 20P (round down to the nearest person)net per head concessions = $6

  • Margin (M) from other sources (just add them together) net per head parking = $3
  • Seating capacity is 1000 (so you can't actually sell more than 1000 tickets even if your price produces demand greater than 1000
  • Considering only even dollar prices (e.g. ..., 24, 25, 26, ....), find the price that maximizes total revenue
  • Calculate and use to answer the questions below

1. What is the optimal price (P) that maximizes total revenue (TR)

2. What is the expected attendance (A) at your optimal price

3. What is the expected revenue per person (R=P+M)

4. What is the expected total revenue (TR)

Reference no: EM133082001

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