00:01
In nora jones, the musical artists who created songs such as come away with me and don't know why, national concert toured, she sold an average of two -thirds of the tickets available, meaning that one -third of the seats were left empty at a typical concert.
00:16
A, suppose the local promoter of each concert is a monopolist with a fixed number of seats in each concert hall.
00:23
Also suppose the promoter's cost is independent of the number of people who attend the concert.
00:28
Nora jones received a flat payment independent of the number of tickets sold.
00:31
If the concert charges a single market price, what factors are considered in determining the profit maximizing cost? would the failure to sell out the concert suggest that the monopoly set is too high a price? b.
00:46
Does the amount of nora jones's flat payment influence the profit maximizing price? c.
00:53
How do your answers in part a change if the concert hall can perfectly price discriminate? in reality, nothing is ever actually perfect, not even at a nora jones ' cost.
01:02
Concert.
01:06
A.
01:06
In maximizing monopoly profits, the alternative would be to produce that quantity where marginal revenue equals marginal cost.
01:48
Here in the case, the seats are limited and there is no substitute, as there is no competition.
02:19
Therefore, the price and quantity demanded can be controlled.
02:43
Yes, failure to sell a concert shows.
02:50
So failure to sell off the show...