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# (Solved): Suppose that a college sells tickets to a popular sport. Everyone likes tickets to big games more t ...

Suppose that a college sells tickets to a popular sport. Everyone likes tickets to big games more than tickets to games where your team is likely to win by a large margin (here calted a big win). There are stitt two groups of peopte wilh different preferences, however. The first group likes big games more than does the second group, while the second group likes big wins more than does the first one. For simplicity, assume there is one game of each type per year and 1,000 people in each group. The table shows the willingness to pay of the two types of people for the two types of tickets. Use thic information to answer the two questions. Assume that the college wants to maximize its ticket revenue and cannot tell which people fall into each category. The stadium is large enough to accommodate up to 2,000 people. How much ticket revenue can the college collect each year if it sells the tickets individually? How much ticket revenue can the college collect each year if it bundles the tickets and can prevent resale?

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