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Suppose a professional football team plays in 40,000 seat stadium. The demand for season tikcets for this team is give by the following equation,
A) show the demand, marginal revenue and marginal cost curves on a graph. What is the profit maximizing price for a season ticket? How many season tickets would be sold?
b) how much consumer surplus would season ticket holders have?
c) if the owner decided to implement a personal seat licence plan, what is the maximum amount of PSL fees that could be collected, without changing your price, quantity answer to part “a”?
d) if the annual total cost of operating the team, including player salaries, is $20,000,000, how much revenue is available for lobbying activity?
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