In the same football conference there 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?
A)$4.50
B)$9
C)$8
D)$18
E)$27

Question

Quizplus · Accepted Answer

To find the revenue-maximizing price, we first need to determine the price elasticity of demand and set marginal revenue equal to zero. The demand function is Q = 180,000 - 10,000p. Revenue (R) is price (p) times quantity (Q), so R = p(180,000 - 10,000p). To maximize revenue, take the derivative of R with respect to p and set it to zero: dR/dp = 180,000 - 20,000p = 0. Solving for p gives p = $9.

In the Same Football Conference There Is Another University Where