Personal Seat Licenses were first introduced by the Carolina Panthers of the National Football League in 1993 to help finance their new stadium. The concept behind Personal Seat Licenses is fairly straightforward: a person pays a fixed-fee for the right to use a seat for a given period of time (that is the ticket price for each game is free after buying the PSL).

Suppose the individual demand for seats at a Panthers game is:

P = 80 Q (or Q = 80 - P)

where Q is measured in number of single game tickets. Assume that all consumers are identical.

Answer the following questions:

1. (1 point) Personal Seat Licenses are what type of price discrimination?
2. (1 point) Assuming they are profit-maximizing, Personal Seat Licenses imply that the Panthers believe the marginal cost of each ticket is what?
3. (5 points) What should the price of each personal seat license be in order for the Panthers to maximize producer surplus (i.e. maximize profit for the sellers)? (You do not need to draw a graph, but it may help.)