Intermediate Moments 8

Intermediate Moments 8 - packed house. For example, lets...

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Jerry Imel Economics 301-2 Intermediate Moment #8 03/15/2011 1.) Will wants the basketball tickets priced so that total ticket revenue is maximized. Since the total revenue from basketball games is directly related to how much money the men’s golf team receives, Will wants to maximize revenue. A full house does not constitute maximum revenue. The marginal revenue of a house that fills 80% of its seats can exceed the marginal revenue of a
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Unformatted text preview: packed house. For example, lets say that the first 8,000 people have a marginal value of $11, this means that BSU would bring in $88,000 for a game. If the team charged $8.50 and got a full house, the revenue that BSU receives would only be $80,000....
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