Suppose the Pullman Bison (home team) play the Moscow Tigers (away team) and the demand for home tickets is given by the following function:

PH =1403H where H is the home attendance in thousands.

The demand for away tickets is given by the following function: PA =604A

where A is the away attendance in thousands.

Lastly, the marginal cost for both teams is $20 and total cost is 20H for the home team, and 20A for the away team.

1. What is the profit maximizing price and attendances level (i.e. Hand A) for each team without revenue sharing?
2. Find the corresponding profit levels for each team?

Now suppose that the league employs revenue sharing of 60-40 for home and away games respectively.

1. Find the profit maximizing price and attendances level (i.e. Hand A) for each team with revenue sharing?
2. Find the corresponding profit levels for each team?
3. talk briefly about the impact of revenue sharing on ticket prices (impact to the fans) and profits for each team: