Find out the ticket price that maximizes revenue

Assignment Help Business Economics
Reference no: EM1360667

A baseball team's attendance depends on the number of games it wins per season and on the price of its tickets. The demand function it faces is Q = N(20 - p), where Q is the number of tickets (in hundred thousands) sold per year, p is the price per ticket, and N is the fraction of its games that the team wins. The team can increase the number of games it wins by hiring better players. If the team spends C million dollars on players, it will win .7 - 1/C of its games. Over the relevant range, the marginal cost of selling an extra ticket is zero.

a. Write an expression for the firm's profits as a function of ticket price and expenditure on players.

b. Find the ticket price that maximizes revenue.

c. Find the profit-maximizing expenditure on players and the profit-maximizing fraction of games to win.

Reference no: EM1360667

Questions Cloud

Pygmalion effect - leadership and management : Show the Pygmalion Effect -What is the Pygmalion Effect as it relates to leadership and management?
Improving cultural competency : Developing diverse knowledge about other populations helps improve cultural competency. This competency can be developed through independent reading, attendance at relevant seminars
Explain how can this business or organization benefit : Explain How can this business or organization benefit from learning about the BPM model and What unique challenges will this organization have in using or implementing the BPM?
Show concept of a servant-leader : Steward Manager - How is the steward-manager similar to the concept of a servant-leader? How would the steward-manager fare in the global business world?
Find out the ticket price that maximizes revenue : Find out the ticket price that maximizes revenue. Find the profit-maximizing expenditure on players and the profit-maximizing fraction of games to win.
Violent videogames : Why might the perception that profits can't mix with responsibility be false?
Calculate the taxable income : Joan and Harry Leahy both had income in 2006. Harry made $52500 in wages. Joan has an incorporated small business that paid her a salary of $30000.
Theory of gilligan and strength-weakness : What would the strengths and weaknessess of Gilligan's theory of moral development be? What stage of this theory would a 40 year old woman be experiencing?
How many electrons are there in a tablespoon : How many electrons are there in a tablespoon. Find the tension in each cable. right cable and left cable.

Reviews

Write a Review

 

Business Economics Questions & Answers

  What is total producer surplus

If there are n firms in the marketplace also every firm charges p. Illustrate what is total producer surplus.

  Which of these methods of encouraging growth

Which of these methods of encouraging growth would you suggest for the typical company in Hong Kong also Singapore

  Company is a publisher of cowboy novels

he R. J. Jones Company is a publisher of cowboy novels - novels about the great western experience, where men were men, horses were horses also well, you get the idea.

  Explain why does this happen fluctuating prices of gasoline

We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.

  Explain how much tax revenue is collected

If government imposes a $5 specific tax to be collected from sellers, what is the price consumers will pay. Explain how much tax revenue is collected.

  Compute the resulting change in consumption expenditure

Before output has had time to adjust, by how much is disposable income reduced. Compute the resulting change in consumption expenditure.

  Elucidate the factors to consider as your fixed factor

Elucidate " "Clearly explain the factors to consider as your "fixed factor" and alternative short term and long-term decisions. Submit your analysis in a one to three page paper. "

  Loved one child more than the other

Gary has two children, Kevin and Dora. Each one consumes "yummiest" and nothing else. Gary loves both children equally.

  An open economy with a fixed exchange rate

An open economy with a fixed exchange rate follow a money growth rule successfully if capital moved freely across its borders..

  Relative profitability of the two potato chip segments

Discuss the manner in which an analyst would compare the relative profitability of the two potato chip segments.

  How much could the store charge for an yearly membership

How much could the store charge for an yearly membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy.

  Government would have to do to keep the unemployment

Give reasons to elucidate what the government would have to do to keep the unemployment rate at 3 percent.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd