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ECO - Assuming a profit maximizing franchis

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Question;Refer to the following graph to answer the two parts to this question. (10 points total)a)Assuming a profit maximizing franchise and zero marginal costs up to capacity, explain why this franchise will not seek to fill the stadium to capacity.b)Assume the team hasn?t performed well lately, but that fans value team quality. Without changing the capacity of the stadium, explain and draw in the graph above what the franchise could do in regards to team quality to cause the franchise to sell the stadium at capacity

 

Paper#56281 | Written in 18-Jul-2015

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