What would they set as a ticket price for the game

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Reference no: EM133496570

Problem

Consider a professional baseball team with ticket demand on any average day of QD=60,000-600 P .The team has marginal costs of $4 associated with each attending fan, but generates an average of $12 per fan in non-ticket profit from concessions and souvenirs.

Question 1. If the team is attempting to maximize total profit on this game, what would they set as a ticket price for the game, how many tickets would be sold, and what is the total profit?

Question 2. Identify and explain two other reasons why a team may choose to price their tickets lower than this profit-maximizing price.

Reference no: EM133496570

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