Question 1161146: A basketball team plays in a stadium that holds 55,000 spectators. With ticket prices at $10, the average attendance has been 27,000. A market survey shows that for each $0.10 decrease in the ticket prices, on average, the attendance will increase by 300. What price should the tickets be set at to maximize revenue?
Remember: Revenue = Price X Quantity
A) Writeboththequantityandpriceequations.
B) Writetherevenuefunction.
C) Graph the revenue function. Clearly label the axes and show a complete graph.
D) On the graph, identify the maximum and draw a tangent line at that point.
E) Findthederivativeofyourrevenuefunction.
F) Usingyourderivative,findyourmaximumpoint.
G) Find the best ticket price, maximum revenue, and how many spectators will be in attendance.
H) Explain what is happening to the revenue before the maximum point and after the maximum point, in
relation to ticket price and spectators.
Answer by ikleyn(52781)   (Show Source):
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