A.

Using a graph for each team and a few well chosen sentences, show how the Phillies and Eagles may both be profit maximizing if the Phillies are not selling out Citizen's Bank Park (45,000 seats) while the Eagles do sell out Lincoln Financial Field (90,000 seats).

B.

Assume that the NFL is considering expanding the league by placing a team in Las Vegas. Using a model for gate revenue (and ignoring other revenue streams), illustrate a scenario in which this franchise would not exist unless the NFL could guarantee the new owner local monopoly power. Further assume that MC=0. Be sure to interpret and label the graph where appropriate and use a few well chosen sentences.

C.

Show graphically, and with a few well chosen sentences how a Major League Baseball team can help both itself and consumers by vertically integrating its local broadcasting network. You may assume that both the team and the broadcasting network start off as local monopolies.