Economics 2152A/B Study Guide - Midterm Guide: Metlife Stadium, Citi Field, New York State Route 57

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Everything we"ve done up to chapter 3, the 2 papers we looked at 25 mc , 1 hour. All teams may not maximize profit but they have a limit as to how much they"re willing and able to lose. Assumptions revenue increases with winning but at a decreasing rate. Teams buy" wins at a constant rate. Profit maximization occurs when the team acquires the numbers of wins that maximizes verticle distance b/w tr curve and tc curve. Team that maximizes wins, wins more games than a team that maximizes profit. 1 - we are going to assume that profit maximization. 1 - it pays to be in a large city in terms of revenue. Ny la dallas all dominate revenue for football, baseball, basketball leagues. Toronto montreal ny dominate revenue for hockey. Other venue related revenues (luxury suites, concessions, adverts) (rv) Tr = rg + rl + rb + rt + rv.

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