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Total cost Price (dollars per ticket) Big Top is the only circus in the nation. The table sets out the demand schedule for circus tickets and the cost schedule for producing the circus. Quantity (tickets per show) (dollars per show) 20 0 1,000 18 100 a. 1,600 16 200 2,200 Calculate Big Top's profit-maximizing price, output, and economic profit if it charges a single price for all tickets. You are constructing a table with total costs ,average total costs, and total revenue. 14 300 2,800 12 400 3,400 10 500 4,000 600 4,600 6 700 5,200 4 800 5,800 b. When Big Top maximizes profit, what is the consumer surplus and producer surplus and is the circus efficient? Explain why or why not. You are constructing a table showing total revenue and marginal revenue. You are also constructing a graph to show consumer surplus and producer surplus C. At the market equilibrium, no children under 10 years old attend the circus. Big Top offers children under 10 a discount of 50 percent. How will this discount change the consumer surplus and producer surplus? Will Big Top be more efficient by offering the discount to children? No graph is needed just an explanation. d. If Big Top is regulated to produce the efficient output, what is the quantity of tickets sold, what is the price of a ticket, and what would be the consumer surplus? No graph is needed, just an explanation with a calculation of consumer surplus e. If Big Top is regulated to charge a price equal to average total cost, what is the quantity of tickets sold, the price of a ticket, and economic profit? You need a graph showing price, MC and AC. You need a graph and you have to show deadweight loss f. Draw a graph to illustrate the circus market if regulators set a price cap that enables Big Top to break even. Show the deadweight loss in your graph. Total cost Price (dollars per ticket) Big Top is the only circus in the nation. The table sets out the demand schedule for circus tickets and the cost schedule for producing the circus. Quantity (tickets per show) (dollars per show) 20 0 1,000 18 100 a. 1,600 16 200 2,200 Calculate Big Top's profit-maximizing price, output, and economic profit if it charges a single price for all tickets. You are constructing a table with total costs ,average total costs, and total revenue. 14 300 2,800 12 400 3,400 10 500 4,000 600 4,600 6 700 5,200 4 800 5,800 b. When Big Top maximizes profit, what is the consumer surplus and producer surplus and is the circus efficient? Explain why or why not. You are constructing a table showing total revenue and marginal revenue. You are also constructing a graph to show consumer surplus and producer surplus C. At the market equilibrium, no children under 10 years old attend the circus. Big Top offers children under 10 a discount of 50 percent. How will this discount change the consumer surplus and producer surplus? Will Big Top be more efficient by offering the discount to children? No graph is needed just an explanation. d. If Big Top is regulated to produce the efficient output, what is the quantity of tickets sold, what is the price of a ticket, and what would be the consumer surplus? No graph is needed, just an explanation with a calculation of consumer surplus e. If Big Top is regulated to charge a price equal to average total cost, what is the quantity of tickets sold, the price of a ticket, and economic profit? You need a graph showing price, MC and AC. You need a graph and you have to show deadweight loss f. Draw a graph to illustrate the circus market if regulators set a price cap that enables Big Top to break even. Show the deadweight loss in your graph

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