Return to NCAA ticket Exercise 6-4.

Answer each of the following as well as possible from the results in Table 6.9.

(a) What is the marginal cost to the NCAA of each seat guaranteed the media?

(b) Suppose that there is an alternative arrangement of the dome where the games will be played that can provide 15,000 seats.

How much additional revenue would be gained from the expanded seating? How much would it be for 20,000 seats?

(c) Since television revenue provides most of the income for NCAA events, another proposal would reduce the price of general public tickets to $50. How much revenue would be lost from this change?

What if the price were $30?

(d) Media-hating coach Sobby Day wants the NCAA to restrict media seats to 20% of those allocated for universities. Could this policy change the optimal solution?
How about 10%?

(e) To accommodate high demand from student supporters of participating universities, the NCAA is considering marketing a new “scrunch seat” that consumes only 80% of a regular bleacher seat but counts fully against the “university Ú half public”
rule. Could an optimal solution allocate any such seats at a ticket price of $35? At a price of $25?