In the same football conference as the university in Problem 9 is another university where the demand for football tickets at each game is 180,000 - 10,000p. If the capacity of the stadium at that university is 100,000 seats, what is the revenue-maximizing price for this university to charge per ticket?

Question

Quizplus · Accepted Answer

To maximize revenue, set marginal revenue (MR) equal to zero. The demand function is Q = 180,000 - 10,000p. Total revenue (TR) is pQ = p(180,000 - 10,000p). Differentiate TR with respect to p and set the derivative equal to zero to find the revenue-maximizing price. Solving this gives p = $9.

In the Same Football Conference as the University in Problem