Question
The city of Winnipeg is considering whether to build a new public ice rink. This rink would have a capacity of 800 ice skaters per
The city of Winnipeg is considering whether to build a new public ice rink. This rink would have a capacity of 800 ice skaters per day, and the proposed admission fee is $6 per individual per day. The estimated cost of the ice rink, averaged over the life of the rink, is $4 per ice skater per day.
The city of Winnipeg has hired you to assess this project. Fortunately, Ottawa already has an ice rink, and the city of Ottawa has randomly varied the price of that rink to find how price affects usage. The results from their study follow:
Ice rink price per day $8
$10
$4
$6
$2
Number of ice skaters per day
500
200
1100
800
1400
Given this information, is an 800-ice rink the optimally sized ice rink for Calgary to build? Explain.
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