Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Untilrecently, hamburgers at the city sports arena cost $3.60 each. The food concessionaire sold an average of 14,000 hamburgers on game night. When the price

Untilrecently, hamburgers at the city sports arena cost $3.60 each. The food concessionaire sold an average of 14,000 hamburgers on game night. When the price was raised to $4.10, hamburger sales dropped off to an average of 9,000 per night.

(a) Assuming a linear demandcurve, find the price of a hamburger that will maximize the nightly hamburger revenue.

(b) If the concessionaire had fixed costs of $2,000 per night and the variable cost is $0.50 perhamburger, find the price of a hamburger that will maximize the nightly hamburger 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

Linear Algebra with Applications

Authors: Steven J. Leon

7th edition

131857851, 978-0131857858

More Books

Students also viewed these Mathematics questions