In recent years, many NFL teams have implemented personal seatlicenses (PSL). In order to purchase season tickets
Question:
In recent years, many NFL teams have implemented personal seatlicenses (PSL). In order to purchase season tickets fans must pay aPSL fee which gives them the right to purchase season tickets. TheSan Francisco 49ers requires potential season ticket buyers to paya “Stadium Builders License” (SBL). Suppose that demand for clublevel seating on the 50 yard line at Levi’s Stadium has thefollowing inverse demand function P =2000–2.5Q and the marginalrevenue function is MR = 2000 –5Q. Assume that marginal cost isconstant at $525.
(a) If the 49ers implemented a two-part pricing strategy whatprice would they charge for season tickets to a club level seat onthe 50 yard line?
(b) What is the amount that the 49ers would charge an individualfor the“Stadium Builders License” which gives the holder right tobuy tickets. (Hint: You will need to draw the graph and find thearea of consumer surplus).