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Customers attending basketball games at the local arena must pay for parking on the grounds and then pay for a ticket needed to enter the arena. The arena manager knows that the customers' demand for the event can be expressed collectively as P = 25 - 0.000625Q. This collective market demand curve adds up all individual demand curves, P=25-15Q.
What is the total the arena will make from parking fees if the marginal cost of providing entertainment is a constant MC = $10 per seat?
a. 180,000
b. 24,000
c. 15
d. 7.5
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