Use the following information for the following 5 questions.
Assume that there are three types of teams in Major League Baseball: large market, medium market and small market. Each of these types has ten teams for a total of 30 teams. The demand function for each type of team is:
DL: Q = 110 - 2P
DM: Q = 80 - 2P
DS: Q = 70 - 2P
Assume the marginal cost of a national advertisement is $610.
What is the price Major League Baseball will pay for each advertisement?
What is the number of advertisements Major League Baseball will buy as a league?
How much will each large market team pay for its share of the advertising budget?
How much will each medium-market team pay for its share of the advertising budget?
How much will each small-market team pay for its share of the advertising budget?