Question

In: Economics

The average ticket price for a concert at the opera house was $25. The average attendance...

The average ticket price for a concert at the opera house was $25. The average attendance was 4000. when the ticket price was raised to $29 attendance decline to an average of 3600 people per performance.

What should the ticket price be to maximize revenue for the opera house? (assuming a linear demand curve.)

Solutions

Expert Solution

steps- as given in picture. First find out the linear equation from formula y= mx+c where m is slope. Find out slope from y2-y1/x2-x1.

Then put the equation in revenue= price*quantity.

You will get a quadratic equation. To maximise revenue you have to keep derivative of revenue equal to zero as at maximum revenue MR. =0. Shown in figure.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

4. When the ticket price for a concert at the opera house was $50, the average...
4. When the ticket price for a concert at the opera house was $50, the average attendance was 4000 people. When the ticket price was raised to $52, the average attendance was 3800 people. a. Assuming the demand function is linear, find the demand function, p. b. Find the number of tickets sold that maximize the revenue. Use the second derivative test to verify it is a maximum. c. Find the price that maximizes the revenue. d. Find the maximum...
Lovers of opera persuade the government to impose a price ceiling of €50 per ticket, at...
Lovers of opera persuade the government to impose a price ceiling of €50 per ticket, at the country's national opera house.Does this policy get more or fewer people to attend? What does the market outcome depend on?
P 2-10: Verdi Opera or Madonna? You won a free ticket to see Verdi's Aida opera....
P 2-10: Verdi Opera or Madonna? You won a free ticket to see Verdi's Aida opera. The ticket has no resale value, but since you enjoy Verdi operas, you would be willing to pay $30 for the ticket had you not received it for free. Madonna is performing on the same night. There is absolutely nothing else you can do that night other than either attending the Verdi opera or the Madonna concert. Tickets to the Madonna concert cost $160....
You have the following information about opera lovers, their operas, and the attendance experiences: •       Susie attended...
You have the following information about opera lovers, their operas, and the attendance experiences: •       Susie attended Madame Butterfly and spent $25 on the ticket for the 1/11 performance, and then went to see La Traviata on 10/3 for $100.  She also went to see Carmen for $30 on 10/10. •       Lee attended Madame Butterfly and spent $25 on the ticket for the 10/21 performance. •       Jackson attended Carmen and spent $30 on the ticket for the 5/12 performance.  He also went to see La...
ABC Catering is putting on a charity dinner. The average selling price for a ticket is...
ABC Catering is putting on a charity dinner. The average selling price for a ticket is $170. The variable cost for the dinner is $110. ABC will also incur fixed costs such as room rental fees and other fixed costs, totaling $30,000. How much sales revenue must ABC Catering generate in order to break even? b. How many tickets must ABC Catering attract in order to break even? Explain your answer. c. What is ABC Catering’s profit or loss at...
ABC Catering is putting on a charity dinner. The average selling price for a ticket is...
ABC Catering is putting on a charity dinner. The average selling price for a ticket is $170. The variable cost for the dinner is $110. ABC will also incur fixed costs such as room rental fees and other fixed costs, totalling $30,000. a. How much sales revenue must ABC Catering generate in order to break even? b. How many tickets must ABC Catering attract in order to break even? Explain your answer. c. What is ABC Catering’s profit or loss...
You are manager of a ticket agency that sells concert tickets. You assume that people will...
You are manager of a ticket agency that sells concert tickets. You assume that people will call 4 times in an attempt to buy tickets and then give up. Each telephone ticket agent is available to receive a call with probability 0.25. If all agents are busy when someone calls, the caller hears a busy signal. Find n, the minimum number of agents that you have to hire to meet your goal of serving 95% of the customers calling to...
When the New York City Opera faced a growing deficit, it cut its ticket prices by...
When the New York City Opera faced a growing deficit, it cut its ticket prices by 20% hoping to attract more customers. At the same time, the New York Transit Authority raised subway fares to reduce its growing deficit. Are one of these two opposite approaches to reducing a deficit necessarily wrong? Explain fully.
when the new york city opera faced a growing deficit, it cut its ticket prices by...
when the new york city opera faced a growing deficit, it cut its ticket prices by 20% hoping to attract more customers. At the same time, The new york transit authority raised subway fares to reduce its growing deficit. Are one of these two opposite approaches to reducing a deficit necessarily wrong? explain?
The average ticket price for a Spring Training baseball game is $30.21, with a standard deviation...
The average ticket price for a Spring Training baseball game is $30.21, with a standard deviation of $6.15. In a random sample of 40 Spring Training tickets, find the probability that the mean ticket price exceeds $33. (Round your answer to three decimal places)
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT