Question
The State College Area High School footballteamischoosingtheirticketpricingscheme.Therearetwotypesofconsumers :Students(S)andNon-Students(N).Theinversedemandbystudentsis PS=703QS and the inverse demand by Non-Students is PN= 1005QN.The marginal cost of ticket production is MC=
The State College Area High School footballteamischoosingtheirticketpricingscheme.Therearetwotypesofconsumers :Students(S)andNon-Students(N).Theinversedemandbystudentsis PS=703QS and the inverse demand by Non-Students is PN= 1005QN.The marginal cost of ticket production is MC= 10 for all consumers.
1.Suppose that the team sets two separate ticket prices,one for Students and one for Non-Students.
a)What is the non-student ticket price?How many non-student tickets are sold ?b)What is the student ticket price?How many non-student tickets are sold?
c)What are the team's profits?
d)Briefly describe what will happen if the students can somehow re-sell their tickets to non-students.
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
