What is the revenue-maximizing ticket price

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Reference no: EM13222015

The Portland Sea Dogs, the AA affliate of the Boston Red Sox major league baseball team, have enjoyed a surge in popularity. During a recent home stand, suppose the club offered $5 of the $12 regular price of reserved seats, and sales spurted from 3200 to 5200 tickets per game.
A. Derive the funcion that describes the price-output relation with price expressed as a function of quantity (tickets sold). Also express tickets sold as a function of price.
B. Use the information derived in part A to calculate total revenues at prices in $1 increments from $5 to $15 per ticket. What is the revenue-maximizing ticket price? If variable costs are negligible, is this amount also the profit-maximizing ticket price?

Reference no: EM13222015

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