Find answers on: (3) The demand function for football tickets for a typical game at a large university is D(p) = 200,000 10,000p..
(3)The demand function for football tickets for a typical game at a large university is D(p) = 200,000 −10,000p. The university has a clever and avaricious athletic director who sets his ticket prices so as to maximize revenue. The university’s football stadium holds 100,000 spectators.(a)Write expressions for total revenue and marginal revenue as a function of the number of tickets sold and compute the profit-maximizing quantity of tickets. Find the marginal revenue and price elasticity of demand at this quantity. (Hint: First write down the inverse demand function, i.e. price as a function of quantity demanded).