Question 2. Suppose that the demand for tickets is given by PD = 1,000 - 100...

 

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Question 2. Suppose that the demand for tickets is given by PD = 1,000 - 100 x Q, marginal revenue is given by MR = 1,000-¹/50 x Q, and the supply for tickets which is equal to marginal cost is given by MC = Ps = 100. a. How many tickets would the team sell and at what price if it acted competitively? (Hint: Solve for Q when Ps= PD, then solve for PD.) b. How many tickets would it sell and at what price if it acted like a monopoly? (Hint: Solve for Q when MR = MC, then solve for PD.) c. Which strategy generates more revenue? (Hint: Revenue - PD x Q.) Question 2. Suppose that the demand for tickets is given by PD = 1,000 - 100 x Q, marginal revenue is given by MR = 1,000-¹/50 x Q, and the supply for tickets which is equal to marginal cost is given by MC = Ps = 100. a. How many tickets would the team sell and at what price if it acted competitively? (Hint: Solve for Q when Ps= PD, then solve for PD.) b. How many tickets would it sell and at what price if it acted like a monopoly? (Hint: Solve for Q when MR = MC, then solve for PD.) c. Which strategy generates more revenue? (Hint: Revenue - PD x Q.)

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a When the team acts competitively it aims to maximize its profit by setting the price equal to the ... View the full answer