The diagram below depicts a professional sport franchise. a) Explain the shape of the marginal cost function. b) Identify the profit maximizing ticket price. Does this team have empty seats at this price? If so, how many? c) If this team reduced the price from the current equilibrium would they sell more tickets? Explain with direct refence to the diagram. d) Can this team increase revenues by decreasing the price from the equilibrium? Explain with direct reference to the diagram. e) What does your answer to part d) tell you about the price elasticity of demand at prices below the equilibrium? Use the definition of price elasticity in terms of percent changes in your answer. 8 3 p ($ per ticket) MR MC 0 5 10 15 20 25 30 35 40 45 50 55 60