Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. You have just opened a new nightclub, Russ' Techno Pitstop, but are unsure how high to set the cover charge (entrance fee). One week

image text in transcribed 4. You have just opened a new nightclub, Russ' Techno Pitstop, but are unsure how high to set the cover charge (entrance fee). One week you charged \$7 per guest and averaged 180 guests per night. The next week you charged $15 per guest and averaged 100 guests per night a) (1 point) Find a linear demand equation showing the number of guests q per night as a function of the cover charge p,q(p). b) (1 point) Find the nightly revenue R(p) as a function of the cover charge p. c) (1 point) The club will provide two free nonalcoholic drinks for each guest, costing the club $3 per head. In addition, the nightly overheads (rent, salaries, dancers, DJ, etc.) amount to $1000. Find the cost C(p) as a function of the cover charge p. d) (1 point) Find the profit P(p) in terms of the cover charge p. e) (1 point) Determine the cover charge you should charge for a maximum profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Are You Legal A Personal Legal Audit And Empowerment Tool

Authors: Nelson P. Miller

1st Edition

099055533X, 978-0990555339

More Books

Students also viewed these Accounting questions

Question

7. Show that (E F)c = EcFc.

Answered: 1 week ago