Suppose the typical Buffalo Bills fan has the demand curve for Bills football games: p = 100

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Suppose the typical Buffalo Bills fan has the demand curve for Bills football games:

p = 100 — 10G, where G is the number games the fan attends.

a. If the Bills operate in a perfectly competitive market and MC = 0, what are the equilibrium price and quantity of tickets?

b. Suppose the Bills are a monopoly and that marginal cost is the same as in part (a).

What are the equilibrium price and quantity (MR =100—20G). What are the equilibrium price and quantity if the Bills can perfectly price discriminate?

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Related Book For  book-img-for-question

The Economics Of Sports

ISBN: 9780133022926

5th Edition

Authors: Michael A. Leeds, Peter Von Allmen

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