Until recently hamburgers at the city sports arena cost $4 each. The food concessionaire sold an average of 10,000 hamburgers on a game night. When the price was raised to $4.40, hamburger sales dropped off to an average of 8,000 per night. Assuming a linear demand curve, find the price of a hamburger that will maximize the nightly hamburger revenue. If the concessionaire has a fixed cost of $1000 per night and the variable cost is $0.60 per hamburger, find the price of a hamburger that will maximize the nightly hamburger profit.

a) Price that maximize revenue P=$3

b) Price that maximize revenue (with costs) P=$3.3

Explanation:

We assume a linear demand curve as:

With the data given, we can calculate the parameters m and Q0:

Then, the demand equation becomes

The revenue can be defined as:

To maximize the revenue, we derive and equal to zero:

We now modify the revenue equation to include the fixed and variable cost, and derive again:

i believe it’s b because the rest don’t make sense

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.