Maximum Revenue A small theater has a seating capacity of 2.000. When the ticket price is...

 

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Maximum Revenue A small theater has a seating capacity of 2.000. When the ticket price is $10, attendance is 1,500. After a price decrease of $2, however, the attendance increased to 1,700. Assuming that the demand function is linear, what ticket price (in dollars) will maximize the revenue? Need Help? Maximum Revenue A small theater has a seating capacity of 2.000. When the ticket price is $10, attendance is 1,500. After a price decrease of $2, however, the attendance increased to 1,700. Assuming that the demand function is linear, what ticket price (in dollars) will maximize the revenue? Need Help?

Answer rating: 100% (QA)

To find the ticket price that will maximize the revenue we need to first determine the demand functi... View the full answer