The Number of Seats in a Football Stadium Is Fixed

question 16

Essay

The number of seats in a football stadium is fixed at 70,000.The team raises the price of a ticket from
$30, where 70,000 are sold, to $40, and it sells 60,000 tickets.The price change caused a change in the consumer surplus of _.
A.-$10.
B.-$50,000
C.-$100,000
D.-$10,000

Comprehend the process and importance of market situation analysis.

Identify and evaluate different market growth and penetration strategies.

Distinguish between internal and external factors in SWOT analysis.

Understand the role of branding and positioning in marketing.

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Definitions:

Step-variable Costs

Costs that remain fixed for a set level of production or activity, but can change in steps when a certain threshold is exceeded.

Mixed Costs

Costs that contain both fixed and variable components, changing with the level of production but not in direct proportion.

Cost Formula

A mathematical equation or method used to calculate the total cost of production or service, considering both variable and fixed expenses.

Activity Levels

The degree of operations or production volume within a specific period, affecting costs and decision-making in businesses.