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6. (Extra credit) Consider a market where a monopolist travel agent sells bus tickets to away games for the fans of a football team in
6. (Extra credit) Consider a market where a monopolist travel agent sells bus tickets to away games for the fans of a football team in champions league. The market clearing price for Q fans is given by 100 per ticket. Suppose that the cost of hiring a bus, driver and gasoline is EUR 1000 per bus and each bus seats 50 fans. (a) Sketch the average cost curve for Q S 500. (b) What does the marginal cost curve look like? Compute also the marginal revenue. (c) Is it true that MR = MC at the prot maximizing quantity of this problem? (d) What is the prot maximizing number of buses
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