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Assuming a profit maximizing franchise and zero marginal

01 / 10 / 2021 Projects

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Assuming a profit maximizing franchise and zero marginal

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 graphabove what the franchise could do in regards to team



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