1.Draw and label a graph showing how a professional sports team prices ticket.

(a)Identify the price at which a monopolist sports team would sell tickets

(b)Use the graph to explain under what conditions a team will sell out their stadium and will not sell out their stadium

2.Describe the different pricing strategies we can use to profit-maximize on ticket sales. Describe the key differences between:

(a)Variable vs. dynamic ticket pricing

(b)Demand-based strategies vs. Discrimination based strategies

3.Define perfect price discrimination. Does prefect price discrimination exist in sport? What strategies do teams use to extract consumer surplus?

4.In a market with only six consumers C1 is willing to pay $80, C2 $70, C3, $60, C4 $50, C5 $40, and C6 is willing to pay $30. How much would each consumer pay if the team perfectly price discriminates?