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Assuming that stadium capacity is not a limiting factor, and given the following demand function: P = 200 - 2Q1 a. Calculate attendance (Q1), consumer
Assuming that stadium capacity is not a limiting factor, and given the following demand function: P = 200 - 2Q1 a. Calculate attendance (Q1), consumer surplus, and total revenue if the price per ticket is $40. b. Assume that the team faced with the above demand function is attempting to profit maximize and that the marginal cost of each fan is zero. What is the profit maximizing ticket price and level of attendance? c. Determine the profit-maximizing ticket price and level of attendance if the team faces the following marginal cost function: MC = Q1 d. Assume that our profit maximizing team now identifies a second set of consumers for whom the demand function is: P = 300 - 3Q2 If the marginal cost of each fan is zero, but stadium capacity is limited to 30, find the profit maximizing attendance and price for each group, assuming the team can successfully segregate the two groups in the market
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