Question
1. Assuming that stadium capacity is not a limiting factor, and given the following demand function: P = 1000 - 2Q a. Find the profit-maximizing
1. Assuming that stadium capacity is not a limiting factor, and given the following demand function:
P = 1000 - 2Q
a. Find the profit-maximizing attendance if the marginal cost of each fan
attending is zero.
b. Find the profit-maximizing attendance if the team faces the following marginal
cost function:
MC = 6Q
c. What would be required for this team to price discriminate in this market?
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
6th edition
73523143, 73523149, 978-0073523149
