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Question: You did so well selling concert tickets that you've been put in charge of organising the next concert. Specifically, you need to book a musical act and decide on the ticket price. If you book a musical act with s million song streams (a measure of their popularity) and charge $p for each ticket, you will sell t = q(p,s) tickets, you will need to pay your musical act $f(s) for their appearance fee, and you will need to pay $v(t) for a venue large enough. Your goal is to maximise concert profits
a. What do you expect the signs of to be? For each, explain why.
b. Formally write the profit maximisation problem.
c. Write the maximisation problem's first order conditions.
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A manufacturing company leases the machine for $31,000 per year. Each unit produced cost of $36.77 in labor and $60.02 in materials. To breakeven 21,000 units should be sold. What is the price of the product? Provide answer with precision to cents.
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