In the Same Football Conference as the University in Problem

question 12

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 60,000 - 8,000p. If the capacity of the stadium at that university is 40,000 seats, what is the revenue-maximizing price for this university to charge per ticket?

• A) $3.75
• B) $1.88
• C) $7.50
• D) $2.50
• E) $11.25

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Definitions:

Quick Assets

Assets that can be converted into cash quickly without significantly affecting their value, such as cash, marketable securities, and accounts receivable.

Debt to Assets Ratio

A financial ratio that indicates the percentage of a company's assets that are provided via debt.

Current Liabilities

Liabilities due within a short period, typically less than a year, that are supposed to be paid out of current assets.

Debt to Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company’s assets.