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A minor league baseball team called the Billings Mustangs attracts both students and non-students as fans during the season, which runs from about mid-April through August. The Mustangs organization has estimated that, among students, weekly demand for tickets varies according to the equation Q 1200 200P, where Q is the quantity of tickets sold and P is the price in dollars. Among non-students, weekly demand is given by the equation Q 800 100P. The Mustangs organization earns marginal revenue from students according to the equation MR = 6-0.01Q and from non-students according to the equation MR 8 0.02Q. The Mustangs incur a marginal cost of $3 among all fans. The Mustangs would like to charge different prices for students and non-students. How many tickets would the Mustangs sell to students, to maximize profit? What price would the team charge to students? How many tickets would the Mustangs sell to non-students, to maximize profit? What price would the team charge to non-students? b. Whether selling ticket packs to students or non-students, the Mustangs organization incurs total costs according to the equation TC 300 3Q If the Mustangs succeed at price discrimination, how much economic profit (or loss) will the team earn selling tickets to students? How much will it earn selling tickets to non-students? How much total economic profit will the team earn? c. Suppose the Pioneer League, in which the Billings Mustangs play prohibits price discrimination in this way and forces the club to chargea single price to all fans. How many tickets would the Mustangs sell to non students if they charged non-students the student price (part a)? Show that MR MC in this situation. How many tickets would the Mustangs sell to students if they charged students the non-student price (part b)? Show that MR MC in this situationD
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a) 1200 - 20P 200 MR 크 l Cd ル11 =3 6- 01 93 ιστ 2 60 f= 6-1.5 Maynimi Pit160 8-6-028 3 5 2, 6 l 60 S. 50 250 259 p= 8-2, 5 5.5 5, 5 to vuok Students an-NS non studes 06 3ơo_ 30 1350-33c 2 Nav daub NS NS NS 3c3 5 55 5-5 (2562 25 x 256338 2 15330 Total uniona. с Rop 1020 + 104s 2065NS total dd 3띠 260 3 2 50 DM 2D Studen L:-е а е 2006-1350 ろ 3 SP 20 1362 0 ろ 20-12 So at Now MR20 2. ろ 2 6 2e 263 3 Mc

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