Assuming that stadium capacity is not a limiting factor, and given the following demand function:

P = 200 - 2Q₁

a. Calculate attendance (Q₁), consumer surplus, and total revenue if the price per

ticket is $40.

b. Assume that the team faced with the above demand function is attempting to

profit maximize and that the marginal cost of each fan is zero. What is the

profit maximizing ticket price and level of attendance?

c. Determine the profit-maximizing ticket price and level of attendance if the

team faces the following marginal cost function:

MC = Q₁

d. Assume that our profit maximizing team now identifies a second set of consumers for

whom the demand function is:

P = 300 - 3Q₂

If the marginal cost of each fan is zero, but stadium capacity is limited to 30,

find the profit maximizing attendance and price for each group, assuming the

team can successfully segregate the two groups in the market.