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Suppose the typical Buffalo Bills fan has the following demand curve for Bills football games:
P = 100 - 10G where G is the number of games the fans attends.
a) If the Bills operate in a perfectly competitive market and MC = 0, what are the equilibrium price and quantity of tickets?
b) Suppose the Bills are a monopoly and the marginal cost is the same as part (a), what are the equilibrium price and quantity of tickets? (MR = 100 - 20G)
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The first day on the job, while you are finishing your employment paperwork, Dan Ervin, who works in Finance, stops by to inform you about the industry's 401(k) plan.
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