Why do we expect coaches to maximize the probability

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Question 1. Suppose Robert is a typical Arizona Wildcats fan, and his demand curve for UArizona football games is given by PD = 120 - 10G, where G is the number of homes games that Robert attends. Suppose the marginal cost of supplying tickets is $0. ete If UArizona must charge the same price for each home game, what price should they charge so that Robert will attend all 8 home games? How much revenue do they earn from Robert? What is Robert's consumer surplus? (Hint: It might help to draw a graph. Recall that consumer surplus is equal to the area above the price and below the demand curve, and that the area of a triangle is equal to 1/2 x base x height.) urn lift b. Suppose Robert is a season ticket holder, and all season ticket holders must pay a one-time personal seat license fee, in addition to the price for each ticket. What should UArizona charge Robert for his personal seat license? (Hint: This is an example of two-part pricing.) c. How much revenue would UArizona earn if instead they used perfect price discrimination on Robert? (Hint: UArizona would charge Robert a different price for each game exactly equal to his willingness to pay, and Robert would receive no consumer surplus.) inset silt sort

Question 2. Using insights learned from David Romer's paper Do Firms Maximize? Evidence from Professional Football," explain why we would expect professional football coaches to call plays that give the team the best chance of winning, especially in the Ist quarter. In other words, why do we expect coaches to maximize the probability of winning? Why was the author's conclusion that professional football coaches appear not to maximize the probability of winning an unexpected finding? (Hint: Why do we assume the objective of firms is to maximize profits?)

Reference no: EM133364177

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