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Draw a linear total cost curve and its associated marginal cost curve. Is it reasonable to assume that the total cost curve is linear
Draw a linear total cost curve and its associated marginal cost curve. Is it reasonable to assume that the total cost curve is linear for professional sports teams? Explain your reasoning. b. [2] Draw a non-linear total revenue curve and its associated marginal revenue curve. Explain why we expect the total revenue curve for a monopoly professional sports team to be non-linear. c. [4] In a single diagram, illustrate the different decisions about win percentage for two types of teams: Team A's goal is to maximize profits while Team B's goal is to maximize win percentage. Assume the teams have identical total revenue and total cost functions. Clearly label your axes and decision choices, assuming that the teams are not at capacity seating. d. [2] Given that these teams have the same total revenue and total cost curves, which team is likely to charge a higher price per ticket? Explain your reasoning, assuming that the teams are not at capacity seating.
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