Suppose that a you are the owner of a movie theater. You have to decide the price of a movie ticket. Obviously if you charge too much for one movie ticket you are not going to do good business. Same thing if you don’t charge enough. So there is a “sweet spot”. Some economist came up with the following model: R = 200 P e-p/12 where R is the total revenue in dollar that the movie theater is making during one night, and P is the price of a movie ticket (in dollar also). (a) What is the price of a movie ticket which maximize revenue? (b) What is the maximum possible revenue?
Suppose that a you are the owner of a movie theater. You have to decide the price of a movie ticket. Obviously if you charge too much for one movie ticket you are not going to do good business. Same thing if you don’t charge enough. So there is a “sweet spot”. Some economist came up with the following model: R = 200 P e-p/12 where R is the total revenue in dollar that the movie theater is making during one night, and P is the price of a movie ticket (in dollar also). (a) What is the price of a movie ticket which maximize revenue? (b) What is the maximum possible revenue?
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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Suppose that a you are the owner of a movie theater. You have to decide the price of a movie ticket.
Obviously if you charge too much for one movie ticket you are not going to do good business. Same thing if you don’t charge enough. So there is a “sweet spot”.
Some economist came up with the following model:
R = 200 P e-p/12
where R is the total revenue in dollar that the movie theater is making during one night, and P is the
price of a movie ticket (in dollar also).
(a) What is the price of a movie ticket which maximize revenue?
(b) What is the maximum possible revenue?
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