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Metallica has a new album out and they are going out on tour in 2023. Suppose the market for Metallica concerts can be separated into
Metallica has a new album out and they are going out on tour in 2023. Suppose the market for Metallica concerts can be separated into two distinct market segments, we'll call them die-hards (D) and casual fans (C). Their demands are: Q D = 60 - PD QC = 200 10PC where price reflects the ticket price to attend the concert. Suppose that the total cost for Metallica (or their touring company) is given by the equation: TC = 120 + 4(QD + QC) a. What are the equation(s) for the Metallica's marginal revenue? What is the equation for Metallica's marginal cost? b. What is the profit maximizing level of output and (ticket) price for die-hards and casual fans? Show all your work
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