When a theater charges $50 per ticket, a sold-out crowd of 600 will buy tickets. For every $5 increase in ticket price, 6 fewer people buy tickets. What ticket price would maximize the theater’s revenue? (Recall that revenue = price • quantity).

Answer 1

r = price * quantity
= p(600-((p-50)/5)*6)
= 660p - 6/5 p^2

max r at p = 275

Answer 2

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