Stanford Stadium has been repaired so that it seats 60,000 people. Now assume that, on average, each member of the general public will consume $20 worth of concessions, resulting in a $10 contribution margin, while each student only consumes $10, resulting in a $5 contribution margin. Assuming no cannibalization, what are the prices for students and the general public that maximize total contribution margin (including ticket revenue).
Price-Response functions:
General Public: dg (pg) = (120,000-3,000pg)
Students: ds (ps) = (20,000-1,250ps)
Where pg is the price charged to the general public and ps is the student price