11 Suppose that the number of seats at Bill Snyder Family Stadium is 50,000.S MAX 50 in this case. Q is always expressed in thousands of tickets.-All of the costs associated with having people come to the game are fixed costs. SO MC = 0The inverse demand function for tickets to the upcoming game is as follows.D (P) = 80 - Qand the Marginal Revenue Function is as followsMR = 80 - 2 QWhat price will K-State charge if they are behaving the way a profit-maximizing (unregulated)monopoly is expected to behave?(I will show you how to calculate profit during class. We will assume K-State has fixed costs of$400,000 per game but if you do this right we will profit $1.2 M)O $80O $60O $120O $0$40

The monopoly is the market structure in which there is only one seller.As the market has only one…

Answered: What price will K-State charge if they…

What price will K-State charge if they are behaving the way a profit-maximizing (unregulated) monopoly is expected to behave?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.7P

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