The Economics of Sports
6th Edition
ISBN: 9781138052161
Author: Michael A. Leeds, Peter von Allmen, Victor A. Matheson
Publisher: Routledge
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Chapter 4, Problem 7P
To determine
Explain that an individual ‘R’ increase profit.
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Students have asked these similar questions
A university football team faces the following demand schedule shown for tickets for each home game it plays. The team plays in a
stadium that holds 60,000 fans. It estimates that its marginal cost of attendance, and thus for tickets sold, is zero. The table below
reflects this data:
Price per Ticket ($) Tickets per Game
100
80
60
40
20
0
Total revenue = $
20,000
40,000
60,000
80,000
100,000
Using this information, calculate how much total revenue the team will earn.
The NHL faces a market demand curve given by P = 25000 – 0.01Q and a new rival league, the World Hockey League (WHL), is threatening to enter the market. Assume that both leagues face only fixed costs and they each have Cournot conjectures. What will be the profit-maximizing level of output and average ticket price for the NHL before the WHL enters the market? Show your work. After the WHL enters the market, work through the first four rounds of strategic pricing and output moves. Show your work. What will be the profit-maximizing output for each league and the average ticket price when all adjustments have been made? Show your work.
Suppose the typical Buffalo Bills fan has the following demand curve for Bills football games:P= 120-10G where G is the number of games the fans attend.If the Bills want to sell the fan a ticket to all eight home games, what price must they charge?
Chapter 4 Solutions
The Economics of Sports
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