Asked by ashley
Consider the Slappers, a hockey team that plays in an arena with 12,000 seats. The only cost associated with staging a hockey game is a fixed cost of $6,000. The team incurs this cost regardless of how many people attend a game. The demand curve for hockey tickets is Q = 12,000 - 1000P and the marginal revenue curve associated with this demand curve is MR = 12 - 0.002Q.
a. The owner’s objective is to maximize the profit per hockey game. He does this by deciding how many tickets to sell (how many seats to fill … some may be left empty). At the profit maximizing output level, how many tickets will be sold?
Always always always. Marginal cost=Marginal revenue. In this amazing arena where there are no marginal cost MC=0=MR.
a. The owner’s objective is to maximize the profit per hockey game. He does this by deciding how many tickets to sell (how many seats to fill … some may be left empty). At the profit maximizing output level, how many tickets will be sold?
Always always always. Marginal cost=Marginal revenue. In this amazing arena where there are no marginal cost MC=0=MR.
Answers
There are no human answers yet.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.