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You are a football enthusiast and love watching the football matches to the extent that you are willing to pay anything upto Rs. 180 for
You are a football enthusiast and love watching the football matches to the extent that you are willing to pay anything upto Rs. 180 for watching a match. You watch a 1.5 hours match in the stadium that costs you Rs. 140. The minimum profit that the stadium owner wishes to generate by conducting the match is Rs. 2,00.000. If there were 6000 viewers in the match, answer the following questions: a. How much is the consumer surplus for you as a buyer? At what price of the match would the consumer surplus be zero for you? [1] b. How much is the total producer surplus for the stadium? [2] c. If the stadium would have used the same ground for conducting a political event, it could have earned Rs. 9,00,000 while the cost of conducting that event is Rs. 60,000 lower than that for conducting the match. What it the opportunity cost of organizing the football match for the stadium? [2] ptions
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