Question: Problem 2: Location Choice. Oklahoma City currently has an NBA team (the Thunder). Demand for Thunder games in Oklahoma City is given by: Pok

Problem 2: Location Choice. Oklahoma City currently has an NBA team (the Thunder). Demand for Thunder games in Oklahoma City is given by: Pok (Qok) 490-22 ok Seattle does not currently have an NBA team, but they would like to attract the the Thunder. Demand for Thunder games in Seattle is given by: Ps(QA) = 430 - 2Q s The marginal cost of production in both cities is constant at MC = 70. 1. Suppose first that no bids are allowed. a) Calculate the profits earned by the Thunder in Oklahoma City. b) Calculate the profits earned by the Thunder in Seattle. c) Will the Thunder move to Seattle?

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