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Mrac [35]
3 years ago
9

Suppose the typical Buffalo Bills fan has the following demand curve for Bills football games: P = 120 – 10G where G is the numb

er of games the fans attends. Suppose the Bills have the chance to offer a season ticket that is good for all eight home games. What price should they charge?
Business
1 answer:
Vika [28.1K]3 years ago
4 0

Answer:

(a) If the Bills want to sell tickets to all 8 games by selling eight individual tickets, they have to set the price P = 120 − 10(8) = 120 − 80 = $40. This yields revenue of $40(8) = $320 from each fan.

(b) If the Bills practice second degree price discrimination, they can effectively charge

P = 120 − 10(1) = 120 − 10 = $110 for single games,

P = 110 + 100 + 90 + 80 = $380 = $95/ticket for a 4-game package, and

P = 110 + 100 + 90 + 80 + 70 + 60 + 50 +40 = $600 = $75/ticket for an 8-game package.

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Hope this helped.. ;)

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Rudik [331]

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5 0
3 years ago
What makes a politicized internal environment so unhealthy?A. The fact that political infighting consumes a great deal of organi
aliina [53]

Answer:

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Explanation:

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3 0
3 years ago
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Marta_Voda [28]

Answer:

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Cheers

7 0
3 years ago
Read 2 more answers
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