Scenario 15-6 The concert promoters of a heavy-metal band, WeR2Loud, know that t

Question

Scenario 15-6 The concert promoters of a heavy-metal band, WeR2Loud, know that there are two types of concert-goers: die-hard fans and casual fans. For a particular WeR2Loud concert there are 1,000 die-hard fans who will pay $150 for a ticket and 500 casual fans who will pay $$0 for a ticket. There are 1,500 seats available at the concert venue. Suppose the cost of putting on the concert is $50,000, which includes the cost of the band, lighting, security, etc Refer to Scenario 15-6. How much additional profit can the concert promoters earn by charging each customer their willingness to pay relative to charging a flat price of $50 pe ticket? O a $25,000 O b. $50,000 $75,000 0 d$100,000

Explanation / Answer

d) $100000

(1000*150) +(50*500) - 1500 * 50

150000- 75000 + 25000

175000 - 75000

$100000

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