Question

Suppose the average student’s demand for a team's football tickets is as follows: Price $20 $14...

Suppose the average student’s demand for a team's football tickets is as follows:

Price $20 $14 $10 $7 $5

Quantity 1 2 3 4 5

a. If this team is a profit maximizer and it can only sell single game tickets, what price will they charge, how many tickets will the average student buy, and how much profit will the college make per student (assuming MC = 0)?

b. If this team is a profit maximizer but instead sells season-tickets for all 5 home games, what price will the college charge and how much profit will the college make per student?

c. Give at least 2 other reasons besides higher ticket revenue why this team would prefer to sell season tickets rather than individual game tickets.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Price Quantity TR MR
20 1 20 20
14 2 28 8
10 3 30 2
7 4 28 -2
5 5 25 -3
a) The team will sell till MR > MC. Therefore firm will sell 3 tickets.
b)
Price Quantity TR MR
20 5 100 20
14 10 140 40
10 15 150 10
7 20 140 -10
5 25 125 -15
The team will now sell 15 tickets.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A university is trying to determine what price to charge for tickets to football games. At...
A university is trying to determine what price to charge for tickets to football games. At a price of $30 per​ ticket, attendance averages 40,000people per game. Every decrease of $2adds 10,000 people to the average number. Every person at the game spends an average of ​$4.00 on concessions. a. What price per ticket should be charged in order to maximize​ revenue? b. How many people will attend at that​ price?
A university is trying to determine what price to charge for tickets to football games. At...
A university is trying to determine what price to charge for tickets to football games. At a price of $24 per​ ticket, attendance average 40,000 people per game. Every decrease of $3 adds 10,000 people to the average number. Every person at the game spends an average of ​$4.50 on concessions. What price per ticket should be charged in order to maximize​ revenue? How many people will attend at that​ price?
A university is trying to determine what price to charge for tickets to football games. At...
A university is trying to determine what price to charge for tickets to football games. At a price of ​$20 per​ ticket, attendance averages 40,000 people per game. Every decrease of ​$4adds 10,000people to the average number. Every person at the game spends an average of ​$6.00 on concessions. What price per ticket should be charged in order to maximize​ revenue? How many people will attend at that​ price? What is price per ticket? What is the avergage attendence ?
A university is trying to determine what price to charge for tickets to football games. At...
A university is trying to determine what price to charge for tickets to football games. At a price of ​$30 per​ ticket, attendance averages 40,000people per game. Every decrease of $3 adds 10,000 people to the average number. Every person at the game spends an average of ​$3.00 on concessions. What price per ticket should be charged in order to maximize​ revenue? How many people will attend at that​ price? What is the price per​ ticket? ​What is the average...
A university is trying to determine what price to charge for tickets to football games. At...
A university is trying to determine what price to charge for tickets to football games. At a price of ​$27 per​ ticket, attendance averages 40,000 people per game. Every decrease of ​$3 adds 10,000 people to the average number. Every person at the game spends an average of ​$4.50 on concessions. What price per ticket should be charged in order to maximize​ revenue? How many people will attend at that​ price?
At a large institution of higher learning, the demand for football tickets at each game is...
At a large institution of higher learning, the demand for football tickets at each game is 100,000-6,000p. If the capacity of the stadium at that university is 60,000 seats, what is the revenue maximizing price for this university to charge per ticket?
The University of Michigan football stadium, built in 1927, is the largest college stadium in America,...
The University of Michigan football stadium, built in 1927, is the largest college stadium in America, with a seating capacity of 107,500 fans. Assume the stadium sells out all six home games before the season begins, and the athletic department collects $64.50 million in ticket sales. Required: 1. What is the average price per season ticket and average price per individual game ticket sold? (Enter your answers in dollars, not in millions (i.e. $5.5 million should be entered as 5,500,000).)...
2. As the owner of a new expansion team in the fledgling Canadian Women’s Professional Hockey...
2. As the owner of a new expansion team in the fledgling Canadian Women’s Professional Hockey League (CWPHL), you have been granted exclusive territorial rights to operate in the city of Calgary. The team will play 35 home games in an arena that has a seating capacity of 10,000. Based on market research, you know that the demand curve for single game tickets in Calgary is given by the equation P = 75 – 0.004Q. You have had to incur...
Graph a typical linear (that means straight line) supply and demand curve for the tickets to...
Graph a typical linear (that means straight line) supply and demand curve for the tickets to a 100,000 seat stadium. Assume that the # of seats in the stadium is fixed at the beginning, and price of each ticket is $50. Label each axis properly and denote equilibrium price and quantity, P* and Q*, respectively. Now, consider that the ticket we just drew the supply and demand for, is a normal good. Suppose the average household income goes down in...
ESPN is negotiating with each team in the Big Ten to broadcast football games this fall....
ESPN is negotiating with each team in the Big Ten to broadcast football games this fall. ESPN estimates that the advertising and subscription revenue they can earn from airing Q games is P (Q) = 100 − 4Q The marginal cost for each team to play a game is MC = 20. First suppose that each team negotiates prices with ESPN separately and, therefore, compete in a Bertrand pricing model. 1. What is the equilibrium price that the team’s will...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT