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  3. consider the minnesota timberwolves setting their season ticket packages they...

Question: consider the minnesota timberwolves setting their season ticket packages they...

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Consider the Minnesota Timberwolves setting their season ticket packages. They want to create two season ticket packages: one aimed at super fans and one aimed at casual fans. Each super fan has an inverse demand curve of P, (Q.) = 100-2Qs and each casual fan has an inverse demand curve P. (Qc)-90-4Qc where Qs and Qc are the number of tickets. The marginal cost for the Timberwolves to sell a seat is mc-10. 1. Assume that the Timberwolves can identify the super fans and casual fans through their past pur chases. What are the optimal season ticket packages they set for each group? What are the profits for the Timberwolves? What is the consumer surplus for each group? 2. Now assume that the Timberwolves cannot identify the super fans and casual fans. What are the optimal season ticket packages they set (i.e. menu)? What are the profits for the Timberwolves? What 3. Is one of the fan type getting a per-transaction discount? Is this discount based on economies of scale? Explain

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