The demand function for football tickets for a typical game at a large midwestern university is D(p) = 200.000–10.000p. The university has a clever and avaricious athletic director who sets his ticket prices so as to maximize revenue. The university's football stadium holds 100.000 spectators. a)Write down the inverse demand function. b)Write expressions for total revenue and marginal revenue as a function of the number of tickets sold. c)Draw the inverse demand function and the marginal revenue function. On your graph, also draw a vertical line representing the capacity of the stadium.
The
a)Write down the inverse demand function.
b)Write expressions for total revenue and marginal revenue as a function of the number of tickets sold.
c)Draw the inverse demand function and the marginal revenue function. On your graph, also draw a vertical line representing the capacity of the stadium.
d)What price will generate the maximum revenue? What quantity will be sold at this price?
e)At this quantity, what is marginal revenue? At this quantity, what is the
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