In the long-run (i.e., across seasons), the monopolist/team sets its profit-maximizing winning percent (WPCT), purchases of talent (T), and the payroll (PAY).Draw a graph illustrating this long-run equilibrium (WPCT*, T*, and PAY*).

In the short-run (i.e., within a season), the monopolist/team sets its profit-maximizing ticket price (P) and quantity of tickets sold (Q). Draw a graph illustrating this short-run equilibrium, (Q*, P*), where Q* results in empty seats in the stadium (i.e., Q* < Q_CAP).