Question
AVR cinema hall has 500 seats. Cost of each ticket is Rs.300 per seat. At this price, the owner will be able to fill the entire hall. If the price of the ticket goes up by Re.1, the number of seats sold goes down by 1. At what price of the ticket, will he maximize his revenue?
Answer: Option D
:
D
Was this answer helpful ?
:
D
Revenue will be maximum when the cost = number of seats, as revenue = (cost of each seat)×(number of seats) i.e. the value of both = 400
Was this answer helpful ?
More Questions on This Topic :
Latest Videos
Latest Test Papers
Submit Solution