Is it possible that fewer sales are better? Suppose you are the manager of a rock group which will soon go on a tour of 30 cities. In each city the group will play in an auditorium. The auditorium in Des Moines, Iowa, seats say 20,000 people. Is it better to sell all 20,000 tickets for the performance or sell less, perhaps 10,000 tickets? When would it be better to sell fewer tickets? ( Hint: Remember that total Revenue is dependent on both the quantity sold and price!)
Response: It is possible for fewer sales to be better. If you are selling the seats at a lower cost to fill the stadium if 20,000 people and the demand is not high enough to fill the stadium your profit could be impacted. Selling out a 10,000 seat stadium with premium prices for the tickets can bring in more profit or total revenue.