Suppose, during the rapid expansion of NASCAR during the 1990s and 2000s, a racetrack owner kept expanding capacity to keep up with demand. Suppose further that fan interest in NASCAR diminished during the recession of 2007-2009. It would have been in that owner's best interest to

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Setting the ticket price where MC=MR (marginal cost equals marginal revenue) maximizes profit, even if it means that there may not be a sellout. Reducing ticket prices (choice A) may lead to more fans attending, but it may not be enough to make up for the cost of reducing seating. Spending money on advertising (choice D) may also not be cost-effective if there is not enough demand. Reducing seating (choice B) may be an option, but it may not be financially feasible if the costs of renovation are high. Therefore, option C is the best choice as it maximizes profit while also taking into consideration diminishing demand.

Suppose, During the Rapid Expansion of NASCAR During the 1990s