What is the efficient number of concerts to offer each year

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A small town in Florida is considering hiring an orchestra to play in the park during the year. The music from the orchestra is nonrival and nonexclusive. A careful study of the town's music tastes reveals two types of individuals: music lovers and intense music lovers. If forced to pay for an outdoor concert, the demand curve for music lovers would be Q₁ = 100 - (1/20)P₁ , where Q₁ is the number of concerts that would be attended and P₁ is the price per (hypothetical) ticket (in dollars) to the concert. The demand curve for intense music lovers would be Q₂ = 200 - (1/10)P₂ . Assuming the marginal cost of a concert is $2800, what is the efficient number of concerts to offer each year?

Reference no: EM131253725

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