At a large institution of higher learning, the demand for football tickets at each game is 100,000 - 8,000p.If the capacity of the stadium at that university is 60,000 seats, what is the revenue maximizing price for this university to charge per ticket?
A)$6.25
B)$5
C)$12.50
D)$3.13
E)$18.75

Question

Quizplus · Accepted Answer

To maximize revenue, set the derivative of the revenue function equal to zero. Revenue R = p * (100,000 - 8,000p). Differentiate R with respect to p, set the derivative equal to zero, and solve for p. The revenue-maximizing price is $6.25.

At a Large Institution of Higher Learning, the Demand for Football