Assume the Frisco RoughRiders (a AA minor league team affiliated with the Texas Rangers) has a demand for tickets given by P=50-10Q, MC=5, where Q is equal to tickets in 1000s. In each case below, show your calculations, graph the curves that depict the situation described, and state your final answer in a sentence.
a) What is the equilibrium price and quantity of RoughRiders tickets if they operate in a competitive market in the Dallas area? What is there total revenue (remember to convert based on the units of Q)?
b) What is the equilibrium price and quantity of RoughRiders tickets if they operate in a monopolistic market in the Dallas area? What is there total revenue?
c) What is the price elasticity of demand at the equilibrium price and quantity from the monopoly solution in (b)?