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(Solved): Use the following information for the following 6 questions. Assume that there are two types of clu ...
Use the following information for the following 6 questions.
Assume that there are two types of clubs in the Premier League: large
clubs and small clubs. There are 6 large clubs and 14 small clubs. The
demand function for each type of club is:
D_(L):P=3000-14Q
D_(S):P=1200-6Q
Assume the marginal cost of a national advertisement is $14,640.
Question 2
What is the quantity of national ads the Premier League will buy as a
league? Question 3
How much will each large club pay per advertisement? (What is the
value of the last ad bought for a large club?)
Question 4
How much will each small club contribute to the advertising budget of
the league?
5
How much will all of the large clubs as a group contribute to the
advertising budget for the league?
