The Economics of Sports
6th Edition
ISBN: 9781138052161
Author: Michael A. Leeds, Peter von Allmen, Victor A. Matheson
Publisher: Routledge
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Chapter 2, Problem 2P
To determine
Explain about the market in which Kings operate.
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The marginal cost of admitting an additional fan to
watch the Sacramento Kings play basketball is close to
zero, but the average price of a ticket to a Kings game
is about $60. What do these facts tell you about the
market in which the Kings operate? Justify your
answer.
Airlines charge a lower price to people who buy their tickets two weeks in advance than they do to people who buy their tickets two days in advance. Explain why. On the other hand, Broadway theaters charge a lower price to people who buy a ticket just before the show begins that to people who buy their tickets weeks in advance. Explain the difference.
There is often only one major league baseball team in a city. What effect does this have on ticket prices?
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