Find ticket price that maximizes revenue

Assignment Help Business Economics

Reference no: EM1372473

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

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

b. Find ticket price that maximizes revenue.

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

Reference no: EM1372473

Questions Cloud

What is the force caused by water on the bottom : The model airplane is flying at a speed of 23 m/s on a horizontal circle of radius 17 m. The mass of the plane is 0.96 kg. The person holding the guideline pulls it in until the radius becomes 8.0 m. The plane speeds up and tension in the guidelin..

What equilibrium wage rate and quantity is of labour hired : Supply curve is given by L = 20w. What equilibrium wage rate and quantity is of labour hired. What is economic rent earned by workers.

Human services for elderly in us : Appraise history of social welfare policy as it pertains to this population (Elderly or Disabled), discussing their specific needs from social welfare program while explaining the role of health and human service professional in the context of div..

Find the total internal energy of this gas : The cylindrical space station, 200 m in diameter rotates in order to give artificial gravity of 3.0 g for the occupants. How much time does it take, in seconds, to complete one revolution.

Find ticket price that maximizes revenue : Find ticket price that maximizes revenue. Find profit-maximizing expenditure on players and profit-maximizing fraction of games to win.

Give comprehensive plan along with network diagrams : Give comprehensive plan along with network diagrams which will portray your plan. Your plan must include equipment and configuration information.

Is there any way of inferring expected future exchange rates : Suppose you want to infer expected future exchange rates in a less-developed country that has free-market-determined interest rates but does not have a forward exchange market. Is there any or way of inferring expected future exchange rates. Unde..

What is force caused by the water on the bottom : A steel aircraft carrier is 379 m long when moving through the icy North Atlantic at a temperature of 1.8 °C. By how much does the carrier lengthen while it is travelling in the warm Mediterranean Sea at a temperature of 24°C.

Explain how firm could employ computed elasticities : Explain how firm could employ computed elasticities in its pricing and marketing decisions. Which of se variables have statistically significant relationships with sales.

User Account

All Pages