Major League Baseball Teams Are Similar to Other Firms in That

question 231

Multiple Choice

Major League Baseball teams are similar to other firms in that they use factors of production to produce a product (baseball games) .An example of capital used by teams to produce their products is

• A)the money teams earn from television contracts and ticket sales.
• B)the land on which baseball games are played.
• C)the labor of baseball players.
• D)the ballparks where the games are played.

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Definitions:

Inferior Goods

Goods whose demand decreases when consumer income rises, opposite to normal goods, due to their lower quality.

Demand Rises

An increase in the quantity of a good or service that consumers are willing and able to purchase at a given price.

Income Falls

A scenario where an individual or household experiences a reduction in their earnings from wages, investments, or other sources.

Equilibrium Price

The selling price where the amount of products supplied equals the amount of products demanded.