Question

In: Economics

ErdemS (ES) is a monopoly selling tickets for the football match of SileSpor. The demand for...

ErdemS (ES) is a monopoly selling tickets for the football match of SileSpor. The demand for each ticket is P = 350 - Q. ES’s cost is $10,000 plus $50 per ticket. (i.e., C(Q)=10.000+50Q ).

a) What is the profit-maximizing price that ES will charge? How many tickets will be sold? What is ES’s profit for this match?

b) Next ES finds out that non-students (Type A) and students (Type B) have different demands:   Let PA = 650 - 5QA stand for the demand function of Type A; and let PB =350-3QB stand for the demand function of Type B. Suppose that ES utilizes price discrimination and asks different prices to each type.

What is the price charged to a non-student (Type A)? What is the price charged to a student (Type B)? How many of each type are on this match? What would ES’s profit be for this match?

Solutions

Expert Solution

Rahul Sunny answered 2 months ago
Next > < Previous

Related Solutions

(20) A college football team is a monopoly in setting price for season tickets. Demand for...
(20) A college football team is a monopoly in setting price for season tickets. Demand for season tickets is P = 25 – 0.005Q, where P is price of a season ticket and Q number of season tickets (one season ticket admits a person to all home games).   Marginal cost of supplying another season ticket is MC = 10 per seat. Use a graph to illustrate all answers. Explain your work. Find the profit-maximizing ticket price and quantity if the...
Before voting on the college football season, the Chicago athletics department estimated demand for football tickets...
Before voting on the college football season, the Chicago athletics department estimated demand for football tickets to be, P=190-.0015Qd. If memorial stadium holds 90,000 fans and they wanted to continue the sellout streak, what is the most that could be charged for tickets? (assume all tickets have the same price)
Suppose the demand for tickets to a Titans' football game is given by the equation P...
Suppose the demand for tickets to a Titans' football game is given by the equation P = 200 - .002Qd. Total player costs are $40m, and the remaining costs of operating the franchise are $10m. All of the costs are fixed (let MC=0), and stadium capacity is 55,000. What is the profit maximizing price and quantity for Titans tickets? Depict your solution in a diagram. Be thorough and precise. Suppose the Titans signed better players. What would happen to ticket...
Consider the demand curve for tickets to Clemson University football games. Indicate the effects on this...
Consider the demand curve for tickets to Clemson University football games. Indicate the effects on this curve of each of the following changes, ceteris paribus. a. Illustrate and explain each event on a seperate graph. b. High quality opponents (e.g., University Miami & Virginia Tech) replace lesser quality opponents on the home schedule. c. Better recruiting classes improve the talent of the Clemson Team. d. The season goes badly and the team drops out of contention for a major bowl...
An economist estimates that a football team faces the below demand schedule for tickets for each...
An economist estimates that a football team faces the below demand schedule for tickets for each home game it plays. The economist estimates that the team’s marginal cost of attendance, and thus for all tickets sold, is $20. Number of Tickets per Game 0 2,000 3,000 4000 5,000 6,000 7000 Price Per Ticket $85 80 75 65 56 48 38 Construct a table showing columns for the firm’s Total Revenue, Marginal Revenue and Marginal Cost. Draw the demand, marginal revenue...
1.Suppose that the campus bookstore has a monopoly on selling textbooks. The market demand is given...
1.Suppose that the campus bookstore has a monopoly on selling textbooks. The market demand is given by P = 129 – 1.5Q and the marginal revenue is MR = 129 – 3Q. The marginal cost of selling textbooks is MC = 1 + Q. What is the profit-maximizing price the monopolist should charge for the textbooks and how many will they sell? Price: $ Quantity: 2.Waste Services has a natural monopoly on trash pickup services to households in a local...
A university is trying to determine what price to charge for tickets to football games. At...
A university is trying to determine what price to charge for tickets to football games. At a price of ​$21 per​ ticket, attendance averages 40,000 people per game. Every decrease of $3 adds 10,000 people to the average number. Every person at the game spends an average of $4.50 on concessions. What price per ticket should be charged in order to maximize​ revenue? How many people will attend at that​ price? What is the price per​ ticket? What is the...
A university is trying to determine what price to charge for tickets to football games. At...
A university is trying to determine what price to charge for tickets to football games. At a price of ​$27 per​ ticket, attendance averages 40,000 people per game. Every decrease of ​$33 adds 10,000 people to the average number. Every person at the game spends an average of ​$4.50 on concessions. What price per ticket should be charged in order to maximize​ revenue? How many people will attend at that​ price?
A university is trying to determine what PRICE to charge for football tickets. At a price...
A university is trying to determine what PRICE to charge for football tickets. At a price of $6 per ticket, it averages 70,000 people per game. For every increase of $1, it loses 10,000 people from the average number . Every person at the game spends an average of$1.50 on concessions. a) What price per ticket should be charged to MAXIMIZE REVENUE? ( Please explain the steps ) b) How many people will attend at that price? Please show your...
A university is trying to determine what price to charge for tickets to football games. At...
A university is trying to determine what price to charge for tickets to football games. At a price of ​$22 per​ ticket, attendance averages 40,000 people per game. Every decrease of ​$22 adds 10,000 people to the average number. Every person at the game spends an average of ​$3.00 on concessions. What price per ticket should be charged in order to maximize​ revenue? How many people will attend at that​ price?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT