Use the following information to answer questions 13-15. The table shows the dem

Question

Use the following information to answer questions 13-15.

The table shows the demand for tickets at the new arena football facility.

Price                      Tickets

$50                         2,000

$40                         5,000

$30                         8,000

$20                         11,000

$10                         14,000

Seating capacity is 14,000. The marginal cost of a ticket (along with the extra crowd control expenses) is $2. Thus, $2 is also the average variable cost. The fixed costs per game including players’ salaries and stadium upkeep are $30,000.

What is the profit maximizing ticket price?

Question 13 options:

$50

$40

$30

$20

$10

Suppose that player salaries increase, causing fixed costs to rise to $40,000. The profit maximizing ticket price is now

Question 14 options:

$30

$20

$10

$40

$50

Due to a change in the fire code, stadium capacity falls to 5000. The profit maximizing ticket price is now

Question 15 options:

$10

$30

$20

$50

$40

$50

$40

$30

$20

$10

Explanation / Answer

13 $30

14 $30

15 $40

If you don't understand anything then comment, I'ill revert back on the same. :)

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