Explore BrainMass
Share

short-run profit maximizing equilibrium graphically for a sports team

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Show the short-run profit maximizing equilibrium graphically for a sports team facing a negatively sloped linear demand with a short-run total cost function (SRTC) of the form: SRTC = TFC + TVC = TFC + α A, where TFC is total fixed cost; TVC is total variable cost; A is attendance and α > 0 is a constant. On your diagram identify equilibrium attendance, the price of tickets and profit. Assume there are positive profits over some range of attendance.

© BrainMass Inc. brainmass.com October 24, 2018, 8:01 pm ad1c9bdddf
https://brainmass.com/economics/general-equilibrium/short-run-profit-maximizing-equilibrium-85941

Solution Summary

A short-run profit maximizing equilibrium graphically for a sports team is depicted in this solution

$2.19