Answer:
$6
Step-by-step explanation:
We know that when the price increases the attendance will be lower compared to that. Let’s create model and determine the function for this:
if ,
99 people = 99 x $2.10 = $207.90
98 people = 98 x $2.20 = $215.60
97 people = 97 x $2.30 = 223.10
96 people= 96* $2.40= 230.4
95 people= 95* $2.50=237.7 and etc. so we see it is going on rising trend but there will be break even point.
The function or model for the revenue will be:
f(x) = (100-x) * (2 + 0.10x)= 200 - 2x + 10x - 0.1x^2
If we know the function is this: F(x)= 200 + 8x - 0.1x^2
Let’s differentiate it to be sure what is the best price regulation to make more profit
Df(x)/dx = 8 - 0.2x
No we need to find max set to 0 and it will be:
8-0.2x = 0 and,
x = 40
So now we are able to know 60 is the best average of people, which would say to us that th admission price is 2 + 0.10*40 = $6
