In a November 21, 2022, in joint letter addressed to the Biden's administration's US Attorney General and the Assistant Attorney General - Antitrust Division, Senators Blumenthal, Klobuchar, and Markey, stated the following:

Live Nation controls 60% of the market for promotion of major concerts and tickets "80 of the top 100 arenas in the country." However, while Live Nation has enjoyed this dominant market position, consumers have been disenchanted. Across all genres and venues, Ticketmaster prices have more than tripled in the past 20 years. In 2018, a Government Accountability Office study found that an average of 27% of these prices are fees. The high prices and labyrinth-like ticketing process for Taylor Swift's Eras tour are clear examples of the harms consumers face in an anti-competitive ticketing market. (footnotes omitted).

Part 1 : Based on the information presented by the Senators, how would you classify the market structure of "the market for promotion of major concerts?" Be specific and use at least two market characteristics discussed in class in your explanation.

Part 2 : (a) Based on the information presented by the Senators, draw the demand curve that Live Nation faces in "the market for promotion of major concerts." (b) Use concepts discussed in class and information in the question to support your answer.

Part 3 : On the same model that you drew for the demand curve Live Nation faces, include Live Nation's cost curves and marginal revenue curve. In drawing your model, assume that Live Nation's marginal cost are equal to its average total cost.

Part 4 : How does Live Nation determine it's profit maximizing quantity of tickets to produce?

Part 5 : Is it possible for Live Nation to earn profits in the long run? Explain your answer.