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Question
Scenario 10.4:The demand for tickets to the Katy Perry concert (Q) is given as follows:
Q = 120,000 - 2,000P
The marginal revenue is given as:
MR = 60 - .001Q
The stadium at which the concert is planned holds 60,000 people. The marginal cost of each additional concert goer is essentially zero up to 60,000 fans, but becomes infinite beyond that point.
Refer to Scenario 10.4. Given the information above, what are the profit maximizing number of tickets sold and the price of tickets?
A) 0, $60
B) 20,000, $50
C) 40,000, $40
D) 60,000, $30
E) 80,000, $20
Answer
This answer is hidden. It contains 1 characters.
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