Question

The general manager of the local hockey team hires you to help maximize the team's total revenue. She explains that most costs are constant because the entire staff must always be available in case the arena reaches its maximum capacity. If your task were to maximize total revenue from ticket sales, then your advice to the manager would be to set the ticket price

Answer 1

My advice to the manager is to set the tichet price as close as possible to the point where the price elasticity of demand equals 1

Step-by-step explanation:

The PED shows the responsivenes of the quantity of a good or service to a change in its price when nothing changes but the price.

Is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price.