1. SOCIAL ENTREPRENEURSHIP: Your student organization wants to raise some money to donate to a favorite charity, so you decide to put on a spring benefit show. Even though you are technically “not for profit" for tax purposes, you still want to raise as much money as you can for the cause, so you act like a profit-maximizing firm. Consider how you should act under various scenarios. Assume that the demand for tickets to your show is given by P[Q] = 40 – ½ Q and that your only costs are the 300 you must pay to rent the theatre. Compute your profit-maximizing price (P*), quantity (Q*) and Profit (T*). а.

1. SOCIAL ENTREPRENEURSHIP: Your student organization wants to raise some money to donate to a favorite charity, so you decide to put on a spring benefit show. Even though you are technically “not for profit" for tax purposes, you still want to raise as much money as you can for the cause, so you act like a profit-maximizing firm. Consider how you should act under various scenarios. Assume that the demand for tickets to your show is given by P[Q] = 40 – ½ Q and that your only costs are the 300 you must pay to rent the theatre. Compute your profit-maximizing price (P), quantity (Q) and Profit (T*). а.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 4SCQ: Suppose that the market price increases to 6, as Table 8.14 shows. What would happen to the...

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