Question

In: Economics

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)

Solutions

Expert Solution


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...
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...
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...
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...
Price Discrimination Promoters of a major college basketball tournament estimate that the demand for tickets on...
Price Discrimination Promoters of a major college basketball tournament estimate that the demand for tickets on the part of adults is given by QA = 5,000 – 10PA, and that demand for tickets on the part of students is given by QS = 10,000 – 100PS. The promoters wish to segment the market and charge adults and students different prices. They estimate that the marginal and average total cost of seating an additional spectator is constant at $10 (i.e. there...
1. (i) Demand function for tickets for a rock concert has been estimated to be ln...
1. (i) Demand function for tickets for a rock concert has been estimated to be ln Q = 3.737 - 1.518 ln P +1.213 ln I where Q denotes number of tickets (in thousands), P the (average) ticket price and I the average income of the concert goers. Determine the values of the price elasticity of demand and the income elasticity of Demand. (ii) In a recent study it has been estimated that the own price elasticity of demand for...
A department store has estimated the demand curve for a popular brand of women’s dress shoes...
A department store has estimated the demand curve for a popular brand of women’s dress shoes as a function of price. Use the table to answer the question that follow. Points Price per pair Dress shoe sales per week A RO 18 100 B RO 15 200 C RO 12 300 D RO 9 400 E RO 6 500 F RO 3 600 Calculate demand elasticity between points A and B, between points C and D, and between points E...
4. The research department of Cardinal Novelties has estimated the demand function facing the firm for...
4. The research department of Cardinal Novelties has estimated the demand function facing the firm for price increases and price declines from the prevailing price are, respectively: Q = 250 -12.5P and Q’ = 208-9P The marginal and average total cost functions of the firm were also estimated to be, respectively: MC =1.75 + (1/50)Q and ATC = 1.75 + (1/25)Q Determine the best level of output of the firm, the price at which the firm sells its output, as...
1. The research department of Cardinal Novelties has estimated the demand function facing the firm for...
1. The research department of Cardinal Novelties has estimated the demand function facing the firm for price increases and price declines from the prevailing price are, respectively: Q = 220 -10P and Q’ = 145-5P The marginal and average total cost functions of the firm were also estimated to be, respectively: MC =2.5 + .05Q and ATC = 2.5 + .025Q Determine the best level of output of the firm, the price at which the firm sells its output, as...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT