Question
Rugby AU has no fixed costs for organizing the game, but it must pay a marginal cost MC of $20 per seat to the
Rugby AU has no fixed costs for organizing the game, but it must pay a marginal cost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be sold for the game: concession and full fare. Based on any official document that attests to their age, children and pensioners qualify to purchase concession tickets that offer a discounted price; everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120-2P Question: Tax per unit (TU): The government decides to tax Rugby AU at $10 per ticket sold. Find the new optimal price P" and quantity Q" that Rugby AU chooses and compute its profit ". Compute the government's tax revenue.
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