Math Problem Statement
The owners of a theme park know that an average of 50,000 people visit the park each day: They are presently charging $15.00 for an admission ticket. Each time in the past that they have raised the admission price, an average of 2,500 fewer people have come to the park for each $1.00 increase in ticket price. What ticket price will maximize the revenue from ticket sales?
Solution
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Math Problem Analysis
Mathematical Concepts
Algebra
Revenue Maximization
Quadratic Functions
Derivatives
Formulas
N(p) = 50,000 - 2,500(p - 15)
R(p) = (50,000 - 2,500(p - 15)) * p
Derivative of Revenue: dR/dp = 87,500 - 5,000p
Critical Point: p = 17.50
Theorems
First Derivative Test for Maximum
Second Derivative Test
Suitable Grade Level
Grades 10-12
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