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Mathematics, 03.10.2021 17:30 theebtful1
Until recently, hamburgers at the city sports arena cost $2.60 each. The food concessionaire sold an average of 14000 hamburgers on game night. When the price was raised to $3.00, hamburger sales dropped off to an average of 10000 per night.
(a) Assuming a linear demand curve, find the price of a hamburger that will maximize the nightly hamburger revenue.
(b) If the concessionaire had fixed costs of $2500 per night and the variable cost is $0.70 per hamburger, find the price of a hamburger that will maximize the nightly hamburger profit.
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