Until recently, hamburgers at the city sports arena cost $2.60 each. The food concessionaire sold an average of 6, 000 hamburgers game night When the price was raised to $3.10, hamburger sales dropped off to an average of 4,750 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 $1,500 per night and the variable cost $.80 per hamburger, find the price of a hamburger that will maximize the nightly hamburger profit