Q1. Suppose the Grizzlies arena had 8,000 seats.What is the profit maximizing number of tickets the Grizzlies should sell?(Assuming the marginal cost is zero up until the capacity of the arena.

A.3,000

B.5,500

C. 6,000

D. 5,000

Q2. What is the price of a ticket at the profit maximizing quantity (for the 8,000 seat arena and assuming marginal cost is zero up until the capacity of the arena.)?

A. $21

B. $15

C. $10

D. $12

Q3. Suppose the Grizzlies arena had 3,000 seats.What is the profit maximizing number of tickets the Grizzlies should sell?(Assuming marginal cost is zero up until the capacity of the arena.)

A. 5,000

B. 5,500

C. 6,000

D. 3,000

Q4. What is the price of a ticket at the profit maximizing quantity (for the 3,000 seat arena and assuming marginal cost is zero up until the capacity of the arena.)?

A. $10

B. $21

C. $15

D. $12

Q5. What is the equation of the Demand curve for Utah Grizzlies tickets given by the graph in Figure 1?

A. P = 10,000 - 30Q

B. P = 5000 - 30Q

C. P = 30 - 0.006Q

D. P = 30 - 0.003Q

Q6. Given that for a linear Demand curve (like the one in Figure 1) the slope of the Marginal Revenue curve is 2 times the slope of the Demand curve.What is the equation for the Marginal Revenue curve for Utah Grizzlies tickets?

A. P = 5000 - 30Q

B. P = 30 - 0.003Q

C. P = 10,000 - 30Q

D. P = 30 - 0.006Q

Q7. Suppose the Utah Grizzlies arena has 6,000 seats.What is the profit maximizing number of tickets the Grizzlies should sell?

A. 6,000

B. 5,500

C. 3,000

D. 5,000

Q8. What is the price of a ticket at the profit maximizing quantity?(Assuming the Utah Grizzlies arena has 6,000 seats and the marginal cost is zero up until the capacity of the stadium.)

A. $12

B. $21

C. $15

D. $10

Q9. Will the Grizzlies sell-out their arena if they sell the profit maximizing quantity of tickets?(Assuming the arena has 6,000 seats and that the marginal cost is zero up until the capacity of the stadium.)

Yes

No

Q10. What will Total Revenue be for the Grizzlies if they sell the profit maximizing quantity of tickets?(Assuming the arena has a capacity of 6,000 seats and the marginal cost is zero up until capacity.)

A. $72,000

B. $75,000

C. $100,000

D. $50,000

Figure 1: Demand, Marginal Revenue (MR) for the Utah Grizzlies hockey team. Tickets for Utah Grizzlies 35 30 25 20 Price -Demand 15 -MR 10 1000 2000 3000 4000 5000 6000 7000 8000 9000 10900 1 1000 Quantity of Tickets