To find: The revenue maximize from ticket sale.
The revenue maximize from ticket sale price is
The seating capacity of arena is .The ticket prize set ,Average attendance will increase by 1000.
Let X is number of attendance, then the increase in attendance is ,For each increase of 1000 attendance the price decreased by so for additional attendance, the decrease in price will be
And the demand function is,
The revenue function is
This value of X gives an absolute maximum by first derivative test.
Then ticket price is,
So the price is $ which will maximize the revenue.
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