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Consider a straight-line demand curve for tickets for a sporting event, P=130-0.005Q. The marginal cost for hosting a game is equal to the average cost
Consider a straight-line demand curve for tickets for a sporting event, P=130-0.005Q. The marginal cost for hosting a game is equal to the average cost for hosting the game, and this amount is 10. Determine the price of tickets sold, the quantity of tickets sold, profit earned by the franchise, consumer surplus gained from the sales and the social loss, if any, due to ticket pricing for 1) a scenario for perfect competition, and 2) a scenario of monopoly pricing
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Microeconomics An Intuitive Approach with Calculus
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