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

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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 = 0 The inverse demand function for tickets to the upcoming game is as follows. D (P) = 80 - Q and the Marginal Revenue Function is as follows MR = 80 - 2 Q What 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 $80 O $60 O $120 O $0 $40
Transcribed Image Text: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 = 0 The inverse demand function for tickets to the upcoming game is as follows. D (P) = 80 - Q and the Marginal Revenue Function is as follows MR = 80 - 2 Q What 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 $80 O $60 O $120 O $0 $40
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