Draw and solve the monopoly problem for two teams that are in the same city: Team 1 has a seating capacity of 10,000 and Team 2 has a seating capacity of 25,000. The demand for tickets is the same for the two teams. Namely, PA=80-2QA and PB=80-2QB where QA and QB are defined in thousands of tickets.

- Draw the marginal cost curves for each of the teams and explain your rationale.

- Will the teams charge the same ticket price and sell the same number of tickets? Show your mathematical steps and explain your answers.

- Is it worthwhile for either of these Teams to move to a larger sporting venue?

Answer rating: 100% (QA)

Two Teams in a Monopoly with the Same City and Demand The analysis for the two teams with the same demand in the same city is as follows 1 Curves of Marginal Cost MC Marginal cost MC is probably going ... View the full answer