In the Same Football Conference as the University in Problem

question 14

Multiple Choice

In the same football conference as the university in Problem 9 is another university where the demand for football tickets at each game is 100,000 - 8,000p. If the capacity of the stadium at that university is 60,000 seats, what is the revenue-maximizing price for this university to charge per ticket?

• A) $6.25
• B) $5
• C) $12.50
• D) $3.13
• E) $18.75

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Definitions:

Average Variable Cost

The cost per unit of variable inputs divided by the total output, showing the variable cost component of producing each unit.

Average Fixed Cost

The fixed costs (costs that do not change with the level of output) of production divided by the quantity of output produced, decreasing as production increases.

Total Cost

The full price of producing goods, encompassing both stable and changeable expenses.

Eyeglasses

Corrective or protective devices worn on the eyes, consisting of lenses mounted in a frame, to improve vision or protect the eyes from damage or light.