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Represents the number of games the fan attends

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Suppose the demand curve for a FC Barcelona fan is P = 200 - 20G, G represents the number of games the fan attends.

a) If FC Barcelona want to sell this fan a ticket to five home games, what price must they charge? what are their revenues?

b) If FC Barcelona can perfectly price discriminate, what are will their revenues be?

c) FC Barcelona decides to charge a two-part tariff, a fixed fee for entry and a price per game. If the marginal cost of attendance is $10, what is the optimal fixed fee for the fan?

Reference no: EM133076768

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