2. (20 points) The San Diego Padres are set to play the LA Dodgers in a...

 

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2. (20 points) The San Diego Padres are set to play the LA Dodgers in a one-game playoff at Petco Park. Two weeks before gameday, the Padres sell tickets at price $600 which it estimates will sellout Petco Park. As the game approaches, actual gameday (inverse) demand for tickets is P = 1,200 - 1.5Q, where Q is number of tickets (in 100's). The marginal cost to supply another ticket is zero and marginal revenue is MR 1,200-3Q. Petco Park seats a maximum of QMax 300 (in hundreds, or 30,000 attendance). Use a graph and explanation to illustrate your calculated answers below. = a. Explain and show that the $600 is not the profit-maximizing ticket price for the gameday demand (assume the Padres act as a single-price non-discriminating monopolist.) b. Companies like Stubhub list tickets in the secondary market (i.e., ticket holders can resell their tickets). What will be the price of tickets on Stubhub on gameday? Explain your work and show graphically. c. Explain and show (1) the profit for the Padres and (2) profit for fans who resell tickets on Stubhub in part b. d. Explain how the Padres can work with Stubhub to capture more consumer surplus from fans. 2. (20 points) The San Diego Padres are set to play the LA Dodgers in a one-game playoff at Petco Park. Two weeks before gameday, the Padres sell tickets at price $600 which it estimates will sellout Petco Park. As the game approaches, actual gameday (inverse) demand for tickets is P = 1,200 - 1.5Q, where Q is number of tickets (in 100's). The marginal cost to supply another ticket is zero and marginal revenue is MR 1,200-3Q. Petco Park seats a maximum of QMax 300 (in hundreds, or 30,000 attendance). Use a graph and explanation to illustrate your calculated answers below. = a. Explain and show that the $600 is not the profit-maximizing ticket price for the gameday demand (assume the Padres act as a single-price non-discriminating monopolist.) b. Companies like Stubhub list tickets in the secondary market (i.e., ticket holders can resell their tickets). What will be the price of tickets on Stubhub on gameday? Explain your work and show graphically. c. Explain and show (1) the profit for the Padres and (2) profit for fans who resell tickets on Stubhub in part b. d. Explain how the Padres can work with Stubhub to capture more consumer surplus from fans.