3. Overrated State University (OSU) has a football team. When the ticket price is p, alumni...

 

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3. Overrated State University (OSU) has a football team. When the ticket price is p, alumni demand 1,000(80 - p) tickets and local fans demand 1,000(44 - p). Marginal cost is equal to zero, and the stadium has capacity K. Assume that OSU employs third-degree price discrimination and resale of tickets is impossible. Find the profit-maximizing ticket prices for two groups of fans in the following cases: (i) K≥ 62,000. (ii) 62,000 > K≥ 18,000. (iii) K< 18,000. 4. Random State University (RSU) faces demand uncertainty when selling football tickets. In the high-demand state, the quantity demanded is 1,000(100 - p). In the low-demand state, it is 1,000(80 - p). There is probability ½ that demand is high. Marginal cost equals zero, and the stadium has capacity K. 3. Overrated State University (OSU) has a football team. When the ticket price is p, alumni demand 1,000(80 - p) tickets and local fans demand 1,000(44 - p). Marginal cost is equal to zero, and the stadium has capacity K. Assume that OSU employs third-degree price discrimination and resale of tickets is impossible. Find the profit-maximizing ticket prices for two groups of fans in the following cases: (i) K≥ 62,000. (ii) 62,000 > K≥ 18,000. (iii) K< 18,000. 4. Random State University (RSU) faces demand uncertainty when selling football tickets. In the high-demand state, the quantity demanded is 1,000(100 - p). In the low-demand state, it is 1,000(80 - p). There is probability ½ that demand is high. Marginal cost equals zero, and the stadium has capacity K.

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