4. In a town of 120,000 potential “football fans,” the football team draws the f
ID: 1168210 • Letter: 4
Question
4. In a town of 120,000 potential “football fans,” the football team draws the following attendees per game, at the various prices shown:
P
Q (in thousands)
Q (male) (1’000s)
Q (female) (1’000s)
Revenue (1’000s)
0
120
60
60
0
10
90
50
40
900
20
60
40
20
1200
30
30
30
0
900
Q. If the team can charge ANY prices it wants (including different prices to men and women), what price(s) should it charge to make the largest amount of revenue?
P
Q (in thousands)
Q (male) (1’000s)
Q (female) (1’000s)
Revenue (1’000s)
0
120
60
60
0
10
90
50
40
900
20
60
40
20
1200
30
30
30
0
900
Explanation / Answer
It can charge any price of $10 or $20 for the females as it will produce the same amount of revenue that is $400. And for the male it can charge $30 as it gives the maximum revenue of $900.
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