Question 1043676: When a theater owner charges $2 for admission, an average of 100 people attend. For each 10cent increase in admission price, the average number decreases by 1. What should he charge to make the most money?
Found 2 solutions by josgarithmetic, MathTherapy:
Answer by josgarithmetic(39618)   (Show Source):
You can put this solution on YOUR website!
PRICE ATTENDANCE
2 100
2+1(0.1) 100-1
2+n(0.1) 100-n
Revenue is price multiplied by number attended;
 , revenue as function of n attendees.
Think about that function and you should recognize it is of a parabola with vertex as a maximum. The roots or zeros of r are -20 and 100. The vertex, max point, will be at the n value in the exact middle of the two roots.
What is r when n=40?
What is the admission price when n=40?
Answer by MathTherapy(10552)  (Show Source):
You can put this solution on YOUR website!
When a theater owner charges $2 for admission, an average of 100 people attend. For each 10cent increase in admission price, the average number decreases by 1. What should he charge to make the most money?
Charge: 40 $0.10 INCREASES, plus $2 (current charge), or:  to generate MAXIMUM revenue.
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