In the Past,the University of Georgia (UGA)sold Enrolled Students a Pack

question 137

Multiple Choice

In the past,the University of Georgia (UGA) sold enrolled students a pack of paper tickets that granted them discounted access to all home football games.Recently,the university changed its policy to the following: "Student tickets will be inscribed on your valid UGA ID.There will be no physical tickets for home games." This rule change was most likely implemented to

• A) encourage greater student attendance at home football games and thus gain higher profits.
• B) keep students from actively practicing price discrimination at sporting events.
• C) prevent students from reselling their discounted tickets to other buyers who are willing to pay full price for their tickets.
• D) prevent ticket scalpers from being less willing to engage in price discrimination or other illegal activities near college campuses.
• E) promote the use of a technological advance in card inscribing in order to avoid the negative externalities associated with the overprinting of paper materials.

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Definitions:

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts and resources used for production.

Amortization Payment

A periodic payment which includes both interest and principal, used to pay off debt over a certain period of time.

Average Fixed Cost

The fixed cost per unit of output, which decreases as the quantity of output increases.

Average Total Cost

The total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.