A university is trying to determine what price to charge for tickets to football games. At a price of $30 per ticket, attendance averages 40,000 people per game. Every decrease of $5 adds 10,000 people to the average number. Every person at the game spends an average of $5.00 on concessions. What price per ticket should be charged in order to maximize revenue? How many people will attend at that price?

Question

A university is trying to determine what price to charge for tickets to football games. At a price of ​$30 per​ ticket, attendance averages 40,000 people per game. Every decrease of ​$5 adds 10,000 people to the average number. Every person at the game spends an average of ​$5.00 on concessions. What price per ticket should be charged in order to maximize​ revenue? How many people will attend at that​ price?

Steve · Answer

x = number of $5 discounts ticket price: 30-5x attendance: 40000 + 10000x revenue: (40000 + 10000x)(5+(30-5x)) max revenue at x=7 Huh? Pay people $5 to attend? Check for typos.