In the Same Football Conference There Is Another University

question 18

Multiple Choice

In the same football conference there is another university where the demand for football tickets at each game is 160,000 - 12,000p.If the capacity of the stadium at that university is 90,000 seats, what is the revenue-maximizing price for this university to charge per ticket?

• A)$6.67
• B)$13.33
• C)$5.83
• D)$3.33
• E)$20

Understand the coefficient of determination and its advantages over correlation coefficients.

Differentiate between positive and negative slopes in linear relationships.

Grasp the mathematical distinctions in calculations related to the Pearson correlation coefficient.

Understand the purpose and interpretation of scatterplots.

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Definitions:

Long-run Equilibrium

A state in economics where all factors of production are fully adjustable, and markets or industries have adjusted to their optimal production levels and prices.

Competitive Price-searcher Market

A market in which firms have some degree of market power and can determine their prices, often through differentiation and searching for competitive advantages.

Average Total Cost

The total cost of production divided by the number of units produced, reflecting the cost per unit.

Competitive Price-searcher Firm

A company that sets its own prices based on its products, costs, and the competitive environment, rather than taking the market price as given.