The Children's Theatre Company in Minneapolis produces high quality theater for kids. Demand for tickets can be expressed by the following equation P= 40-(Q/50) where Q is the number of tickets sold and P is the price per ticket. The main cost of staging a production is the fixed cost of $10,000 per night. The variable cost is $2 per guest, and so the marginal cost of putting on a show is MC=2. Graph the marginal revenue, marginal cost & demand. What ticket price maximizes their profit? note: this is a monopoly because... $
The Children's Theatre Company in Minneapolis produces high quality theater for kids. Demand for tickets can be expressed by the following equation P= 40-(Q/50) where Q is the number of tickets sold and P is the price per ticket. The main cost of staging a production is the fixed cost of $10,000 per night. The variable cost is $2 per guest, and so the marginal cost of putting on a show is MC=2. Graph the marginal revenue, marginal cost & demand. What ticket price maximizes their profit? note: this is a monopoly because... $
Chapter9: Monopoly
Section: Chapter Questions
Problem 7SQP
Related questions
Question
I am not sure about this
Transcribed Image Text:The Children's Theatre Company in Minneapolis produces high quality theater for kids. Demand for tickets can be expressed by
the following equation P= 40-(Q/50) where Q is the number of tickets sold and P is the price per ticket. The main cost of staging
a production is the fixed cost of $10,000 per night. The variable cost is $2 per guest, and so the marginal cost of putting on a
show is MC-2.
Graph the marginal revenue, marginal cost & demand. What ticket price maximizes their profit?
note: this is a monopoly because...
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
