Until recently, hamburgers at the city sports arena cost $5.70 each. The food concessionaire sold an average of 23 comma 000 hamburgers on game night. When the price was raised to $6.40, hamburger sales dropped off to an average of 16 comma 000 per night.
(a) Assuming a linear demand curve, find the price of a hamburger that will maximize the nightly hamburger revenue.
(b) If the concessionaire had fixed costs of $1 comma 000 per night and the variable cost is $0.60 per hamburger, find the price of a hamburger that will maximize the nightly hamburger profit.
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Part 1
(a) Assuming a linear demand curve, find the price of a hamburger that will maximize the nightly hamburger revenue.
The hamburger price that will maximize the nightly hamburger revenue is $
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