Question

The marginal cost of selling a ticket is $12. Other fixed costs per game equal $6000. Finally, seating capacity is 6000. Use the following steps to find the profit maximizing price: first, calculate the Total Revenue=Price×Tickets. Second, calculate the Marginal Revenue, which is the change in Total Revenue as you move from one price level to the next. Finally, find the price at which Marginal revenue=Marginal cost.

Answer 1

hello your question lacks the required table attached is the table

answer : the total revenue

= price * no of tickets

for $20 at 1000 tickets = $20000

Marginal Revenue

= Revenue per tickets

Marginal cost = 6000 + 12 x

x = number of tickets

Step-by-step explanation:

marginal cost = $12

fixed costs per game = $6000

seating capacity = 6000

A) the total revenue

= price * no of tickets

for $20 at 1000 tickets = $20000

Marginal Revenue

= Revenue per tickets

Marginal cost = 6000 + 12 x

x = number of tickets

attached is the detailed solution and the missing table