Suppose that the demand for tickets to a game is given by P = 100 0.002A,

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Suppose that the demand for tickets to a game is given by P = 100 − 0.002A,

and the corresponding marginal revenue is MR = 100 − 0.004A, where A is the number of attendees. Assume that the constant marginal cost of fan attendance is 10.

a. What are the price and attendance with competition?

b. Howmuch consumer surplus exists?

c. What are the monopoly price and attendance?

d. Howmuch profit does themonopolist earn?

e. Howmuch consumer surplus is left (if any)?

f. Calculate the social welfare loss.

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Sports Economics

ISBN: 9780521876612

1st Edition

Authors: Roger D. Blair

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Question Posted: Nov 13, 2024 02:00 AM

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Suppose that the demand for tickets to a game is given by P = 100 0.002A,

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Sports Economics

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