ZuoTi.Pro
Question

Suppose that each team in a league has a demand curve for generic advertising (a league-wide...

Suppose that each team in a league has a demand curve for generic advertising (a league-wide nonteam–specific campaign) equal to Q=5,000-10p. If there are 40 teams in the league, and ads cost $325 each, how many ads will the teams want to purchase as a group? How would your answers change if league advertising were considered to be a private good?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Since advertisement is a public good which means there will be vertical summation

10P=5000-Q P=500-0.1Q Market demand P=20000-4Q and MC=325

Thus price=MC=325

P=325=20000-4Q Q=19675/4=4918.75 and Price=325

If it would have been a private good then market demand will be a horizontal summation of individual demand curve

Q=5000(40)-10(40)P=200000-400P

when P=325 then Q=200000-400(325)=70000

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose that each team in a league has a demand curve for generic advertising (a league-wide...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 3. (3pts. total) Suppose that each team in a league has a demand function for generic...

    3. (3pts. total) Suppose that each team in a league has a demand function for generic advertising equal to 100-5P. Advertisements cost $150 each. a. (1 pr.) How many ads will each team purchase individually? Hint: teams will not buy a negative number of ads. In this case, they would just purchase zero ads. b. (I p.) The league thinks that these generic advertisements will help all 10 teams in the league. Therefore, the entire league's demand for advertising is...

  • Suppose that the demand curve for wheat is Q=140 - 10p and the supply curve is...

    Suppose that the demand curve for wheat is Q=140 - 10p and the supply curve is Q = 10p. The government imposes a specific tax of = 1 per unit. a. How do the equilibrium price and quantity change? (Round quantities to the nearest integer and round prices to the nearest penny) The equilibrium quantity without the specific tax is 70 and the price without the specific tax is $ 7. The equilibrium quantity with the specific tax is 65...

  • Consider a Little League team that has 15 players on its roster, each player is allowed...

    Consider a Little League team that has 15 players on its roster, each player is allowed to play any position and each is considered at the same skill level, a) How many ways are there to select 9 players for the starting line up 3. How many ways are there to select 9 players for the starting line up out of the 15 which include the batting order for those 9 starters (hint: order counts) b) Supposed 5 of the...

  • Demand is a schedule of how much of a good people will purchase at each income...

    Demand is a schedule of how much of a good people will purchase at each income level. how much of a good a person wants. each possible price and the amount people will buy when their incomes change. O how much of a good people will purchase at each different possible price. Question 6 Which of the following best represents the law of demand? As the price of a good increases, the quantity demanded of that good decreases. As the...

  • Question 111 pts Assume that individuals are homogeneous and that each has a demand curve of...

    Question 111 pts Assume that individuals are homogeneous and that each has a demand curve of the following form for internet service: p=50-2q where p is the price per hour and q is hours per month. Assume the firm has a constant marginal cost of $12. The profit maximising two-part tariff results in the firm setting a per unit price equal to ______ and earning ________ profit from each consumer: Group of answer choices 12: 361. 12: 589: 31: 361....

  • The can industry is composed of two firms. Suppose that the demand curve for cans is...

    The can industry is composed of two firms. Suppose that the demand curve for cans is P= 100- Q and total cost function of each firm is TC = 2 + 15q. b) If only one firm enters new market, how much will each firm produce and will make the profit? c) If both enter the new market, how much will each firm produce and will make the profit? e) If these two firms collude and they want to maximize...

  • Suppose each of the 1 million Islandian households has the same demand curve for heating oil. How much consumer surplus...

    Suppose each of the 1 million Islandian households has the same demand curve for heating oil. How much consumer surplus would each household lose if it had to pay $2 per gallon instead of $1 per gallon for heating oil, assuming there were no other changes in the household budget? Instructions: Enter your response rounded to two decimal places. $  per year. With the money saved by not subsidizing oil, by how much could the Islandian government afford to cut each...

  • Problem 1 Dext season. You need to set the following demand curves Imagine you are asked...

    Problem 1 Dext season. You need to set the following demand curves Imagine you are asked to help with football tickets for the Congo the price for student tits and student tickets. You are for students (s) and non-students (ns): Q. = 50 - 4P. + P... Q = 100 - 2P... +P. Assume the marginal cost for all tickets is $10 pot hint: You won't What should you set the student ticket price to if you want to make...

  • The Case The National Basketball Association (NBA) is the leading professional basketball league in the United...

    The Case The National Basketball Association (NBA) is the leading professional basketball league in the United States and Canada with 30 teams. The NBA is one of four North American professional sports leagues. The other leagues are the Major League Baseball, the National Football League, and the National Hockey League. While focused on the North America, the NBA has a large international following and is televised in 212 countries and 42 languages around the world. Increasingly, fans want and expect...

  • What Exactly Does Being “Creative” and “Effective” Mean? An argument can be made that “effective” or...

    What Exactly Does Being “Creative” and “Effective” Mean? An argument can be made that “effective” or successful advertising is usually being creative with a purpose. Certainly, the notion of effective advertising can vary from culture to culture. In the United Kingdom, a premium may be placed on being different, humorous, or out-of-the ordinary in differentiating campaigns from the mass of mediocre advertising. In the United States, creative advertising is viewed more often as being “effective” in that the creativity has...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT