How many ads would individual teams have incentive to buy

Reference no: EM13937750

There are ten teams in a league and each team has a demand curve for generic (league wide, non-team specifit) advertising given by the following equation. Q = 10,000 - 10P

Assume the cost of these generic ads is constant at $8,000 each.

a) How many ads would individual teams have the incentive to buy?

b) How many ads would the teams as a group have the incentive to buy

c) What is the value of the last ad purchased to any one team?

d) What is the value of the last ad purchased to all teams as a group?

Reference no: EM13937750

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