SM241 Exam with all Correct & 100% Verified Answers |Actual Complete
Update |Already Graded A+
Suppose that the Yankees had been purchased for an inflation adjusted ($2017) $22.5 million rather than
$11.1 million in 1915. Now what would have been the real rate of growth over the same 83 year span? -
(answer)4.6%
The revenues in the cardboard box industry swamp those of even the highest grossing pro sports league,
the NFL. Why is this a weak indicator of relative importance of cardboard boxes and sports? -
(answer)Fan observed behavior suggests that sports are more important than just the revenues they
produce.
Which of the following indicate that sports are big business? - (answer)All of the above (Most of the "top
100" people in sports are sports business executives, Revenues appear to matter to team success,
Owners behave as if the bottom line matters to them)
Why do owners feel under-appreciated and often maligned? - (answer)All of the above (It is their capital
investment that is on the line, Only owners actually face the cost of winning, It is their business acumen
that actually helps determine success or failure)
"Say I'm worth $1.1 billion, and through a series of incredibly moronic moves, I lose $100 million. Oh,
gee! What does that leave me?" Mark Cuban, dot.com billionaire owner of the Dallas Mavericks (Sports
Illustrated November 6, 2000, p. 88).
Do you believe that Mr. Cuban really doesn't care if he blows $100 million in management mistakes?
What else is behind his statement? - (answer)
According to Professor Rottenberg's uncertainty of outcome hypothesis, if a league gets too imbalanced
on the field then... - (answer)All of the above (It risks losing fans of the worst teams, It risks having to
close down the worst teams in the league altogether, It risks losing general fan interest in post-season
play)
The way to eliminate the need to ration tickets is... - (answer)Eliminate the scarcity of the tickets.
,SM241 Exam with all Correct & 100% Verified Answers |Actual Complete
Update |Already Graded A+
What happens to the demand for NFL games in Detroit if ticket price increases? - (answer)Demand stays
the same.
What happens to the demand for NFL games in Detroit if informed fans find football less to their liking
due to the league's concussion problems? - (answer)Demand decreases.
What happens to the demand for NFL games in Detroit if incomes rebound coming out of the recession?
- (answer)If football is a normal good in Detroit, demand increases.
What happens to the demand for NFL football in Detroit if the price of season tickets to the Detroit
Opera Company falls? - (answer)If football and opera are substitutes, demand decreases.
Why does the ticket demand function for a college basketball team slope downward? - (answer)Only A
and B (There are substitutes for this team's games, but they are imperfect substitutes, The basketball
team has market power)
Using the data in Table 2.2, what is the price elasticity of demand for Men's and Women's basketball
season tickets when the price falls from $30 to $20? (Round to one place right of the decimal point.) -
(answer)Men's = 1.2, Women's = 3.0
If total revenue is increasing at a maximum, decreasing, then marginal revenue is... - (answer)Positive,
Zero, Negative
If the current level of ticket sales is on the inelastic portion of the demand curve for a team's tickets,
then lowering price will... - (answer)Decrease total revenues.
The NFL's Houston Oilers left Texas to become the Tennessee Oilers for the 1997 season. They changed
their name to the Tennessee Titans and moved into their new Adelphia Stadium for the 1999 season.
, SM241 Exam with all Correct & 100% Verified Answers |Actual Complete
Update |Already Graded A+
Interestingly, their lowest-priced individual tickets were $12, while their lowest-priced season ticket was
$250.
Given that there are only eight home games, why didn't rans just buy individual tickets rather than
season tickets?
Is this price discrimination? Explain.
Responses - (answer)This is not price discrimination because season tickets and single-game tickets are
two distinct products. Season tickets come with certain benefits for the customer outside the ticket
itself. Fans buy season tickets to have perks that single-game tickets don't like having the same seat
every game or outside of game experiences and that is ultimately why they pay more.
How do leagues and conferences sell programming? - (answer)All of the above.
Which of the following do advertisements seek to establish? - (answer)Both A and B.
Which of the following sports trails "none" for women? (Check all that apply) - (answer)Baseball
Which of the following pro leagues sells local broadcasts? - (answer)All of the above except C (MLB, NBA,
and NHL all do, NFL does not)
Comcast Chairman/CEO said the following of the eventual agreement between Comcast and the NFL
Network: "I think both sides may have had to give a little more than they intended." Economically, why is
it the case that it was Comcast that did nearly all of the "giving"? - (answer)F*<P*-AC*
The "Winner's Curse" explains large leaps in the value of sports rights fees. - (answer)False
According to your textbook, after subtracting the sale price to the Steinbrenner group, CBS lost $?
million on its ownership of the New York Yankees? - (answer)$53.6 million
Update |Already Graded A+
Suppose that the Yankees had been purchased for an inflation adjusted ($2017) $22.5 million rather than
$11.1 million in 1915. Now what would have been the real rate of growth over the same 83 year span? -
(answer)4.6%
The revenues in the cardboard box industry swamp those of even the highest grossing pro sports league,
the NFL. Why is this a weak indicator of relative importance of cardboard boxes and sports? -
(answer)Fan observed behavior suggests that sports are more important than just the revenues they
produce.
Which of the following indicate that sports are big business? - (answer)All of the above (Most of the "top
100" people in sports are sports business executives, Revenues appear to matter to team success,
Owners behave as if the bottom line matters to them)
Why do owners feel under-appreciated and often maligned? - (answer)All of the above (It is their capital
investment that is on the line, Only owners actually face the cost of winning, It is their business acumen
that actually helps determine success or failure)
"Say I'm worth $1.1 billion, and through a series of incredibly moronic moves, I lose $100 million. Oh,
gee! What does that leave me?" Mark Cuban, dot.com billionaire owner of the Dallas Mavericks (Sports
Illustrated November 6, 2000, p. 88).
Do you believe that Mr. Cuban really doesn't care if he blows $100 million in management mistakes?
What else is behind his statement? - (answer)
According to Professor Rottenberg's uncertainty of outcome hypothesis, if a league gets too imbalanced
on the field then... - (answer)All of the above (It risks losing fans of the worst teams, It risks having to
close down the worst teams in the league altogether, It risks losing general fan interest in post-season
play)
The way to eliminate the need to ration tickets is... - (answer)Eliminate the scarcity of the tickets.
,SM241 Exam with all Correct & 100% Verified Answers |Actual Complete
Update |Already Graded A+
What happens to the demand for NFL games in Detroit if ticket price increases? - (answer)Demand stays
the same.
What happens to the demand for NFL games in Detroit if informed fans find football less to their liking
due to the league's concussion problems? - (answer)Demand decreases.
What happens to the demand for NFL games in Detroit if incomes rebound coming out of the recession?
- (answer)If football is a normal good in Detroit, demand increases.
What happens to the demand for NFL football in Detroit if the price of season tickets to the Detroit
Opera Company falls? - (answer)If football and opera are substitutes, demand decreases.
Why does the ticket demand function for a college basketball team slope downward? - (answer)Only A
and B (There are substitutes for this team's games, but they are imperfect substitutes, The basketball
team has market power)
Using the data in Table 2.2, what is the price elasticity of demand for Men's and Women's basketball
season tickets when the price falls from $30 to $20? (Round to one place right of the decimal point.) -
(answer)Men's = 1.2, Women's = 3.0
If total revenue is increasing at a maximum, decreasing, then marginal revenue is... - (answer)Positive,
Zero, Negative
If the current level of ticket sales is on the inelastic portion of the demand curve for a team's tickets,
then lowering price will... - (answer)Decrease total revenues.
The NFL's Houston Oilers left Texas to become the Tennessee Oilers for the 1997 season. They changed
their name to the Tennessee Titans and moved into their new Adelphia Stadium for the 1999 season.
, SM241 Exam with all Correct & 100% Verified Answers |Actual Complete
Update |Already Graded A+
Interestingly, their lowest-priced individual tickets were $12, while their lowest-priced season ticket was
$250.
Given that there are only eight home games, why didn't rans just buy individual tickets rather than
season tickets?
Is this price discrimination? Explain.
Responses - (answer)This is not price discrimination because season tickets and single-game tickets are
two distinct products. Season tickets come with certain benefits for the customer outside the ticket
itself. Fans buy season tickets to have perks that single-game tickets don't like having the same seat
every game or outside of game experiences and that is ultimately why they pay more.
How do leagues and conferences sell programming? - (answer)All of the above.
Which of the following do advertisements seek to establish? - (answer)Both A and B.
Which of the following sports trails "none" for women? (Check all that apply) - (answer)Baseball
Which of the following pro leagues sells local broadcasts? - (answer)All of the above except C (MLB, NBA,
and NHL all do, NFL does not)
Comcast Chairman/CEO said the following of the eventual agreement between Comcast and the NFL
Network: "I think both sides may have had to give a little more than they intended." Economically, why is
it the case that it was Comcast that did nearly all of the "giving"? - (answer)F*<P*-AC*
The "Winner's Curse" explains large leaps in the value of sports rights fees. - (answer)False
According to your textbook, after subtracting the sale price to the Steinbrenner group, CBS lost $?
million on its ownership of the New York Yankees? - (answer)$53.6 million
