Rugby AU has no fixed costs for organizing the game, but it must pay a marginal...

 

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Rugby AU has no fixed costs for organizing the game, but it must pay a marginal cost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be sold for the game: concession and full fare. Based on any official document that attests to their age, children and pensioners qualify to purchase concession tickets that offer a discounted price; everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120-2P Question: Tax per unit (TU): The government decides to tax Rugby AU at $10 per ticket sold. Find the new optimal price P" and quantity Q" that Rugby AU chooses and compute its profit ". Compute the government's tax revenue. Rugby AU has no fixed costs for organizing the game, but it must pay a marginal cost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be sold for the game: concession and full fare. Based on any official document that attests to their age, children and pensioners qualify to purchase concession tickets that offer a discounted price; everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120-2P Question: Tax per unit (TU): The government decides to tax Rugby AU at $10 per ticket sold. Find the new optimal price P" and quantity Q" that Rugby AU chooses and compute its profit ". Compute the government's tax revenue.

Answer rating: 100% (QA)

Introduction Explanation The demand for fullfore tickets is ... View the full answer