There Is Often Only One Major League Baseball Team in a City.What

question 43

Multiple Choice

There is often only one major league baseball team in a city.What is the consequence of this in terms of ticket prices?

• A) Ticket prices will be lower because each team is a monopoly in the city.
• B) Ticket prices will be higher because each team is a monopoly in the city.
• C) Ticket prices will be lower because each team lacks market power.
• D) Ticket prices will be higher because each team is faced with strong competition.
• E) Ticket prices are unaffected by the number of teams in a city.

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Definitions:

Return on Equity

A metric indicating financial success determined by dividing a company's net income by its shareholders' equity, demonstrating the efficacy of using investments to create increased profits.

Net Profit Margin

A financial metric that shows the percentage of revenue that remains as profit after all operating expenses, interest, taxes, and preferred stock dividends are deducted.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Debt-to-equity Ratio

A financial ratio highlighting the use of debt versus equity in the capital structure supporting a company's assets.