At a Large Institution of Higher Learning, the Demand for Football

question 68

Multiple Choice

At a large institution of higher learning, 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:

Promote Competition

Actions or policies intended to encourage a competitive market, leading to benefits such as lower prices and innovation.

Artificial Differences

Distinctions made based on non-natural or synthetic criteria, often leading to unnecessary or unfounded separation between groups or categories.

Advertising

The action or profession of producing advertisements for commercial products or services to influence consumer behaviors.

Network Externalities

The value of a product to a consumer increases with the number of that product being sold or used in the market.