The Reason for the Existence of Ticket Scalpers at Concerts

question 213

Multiple Choice

The reason for the existence of ticket scalpers at concerts of popular entertainers is that

• A) some provinces allow them.
• B) someone will always try to exploit a situation for financial gain.
• C) scalpers have very high opportunity costs.
• D) some consumers will value a ticket for a front row seat at more than its face value.
• E) ticket prices are too high.

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Definitions:

Forward Market

A marketplace where futures contracts are traded, enabling parties to buy or sell assets at a future date for a price agreed upon today.

International Operations

Business activities that a company conducts outside its home country, including sales, manufacturing, and production.

Production Costs

The total cost incurred by a business to manufacture a product or to provide a service. This includes materials, labor, and overhead costs.

Forward Rate

An agreed-upon exchange rate for currencies to be traded at a future date, used in forward contracts.