Question
You are the owner of a baseball team. Your stadium has a maximum capacity (think of this as in thousands) of 60. The Marginal Cost
You are the owner of a baseball team. Your stadium has a maximum capacity (think of this as in thousands) of 60. The Marginal Cost of having one additional fan attend the game is $0 if attendance is less than 60 and then infinite for anything above 60. You can take advantage of variable pricing to generate extra revenue when teams that are more popular are in town. Suppose that when the Kansas City Royals are in town the demand for a ticket to the game is: P=100-Q and the Marginal Revenue is: P=100-2Q and when the New York Yankees are in town the demand for a ticket to the game is: P=300-Q and the Marginal Revenue is: P=300-2Q. Draw this graphically and calculate the price and quantity for Royals and Yankees tickets.
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