The Two Important Structural Elements in Sports Leagues, According to Neale

question 18

Multiple Choice

The two important structural elements in sports leagues, according to Neale (1964) , are:

• A) Uncertainty of outcome and competitive balance
• B) Competitive balance and a profit maximization model
• C) Uncertainty of outcome and a cartel system
• D) A cartel system and a profit maximization model

---

Definitions:

Average Total Cost (ATC)

The total cost divided by the quantity of output produced, representing the per-unit cost of production.

Marginal Revenue (MR)

The additional financial gain a firm secures by selling one more unit of its product or service.

Purely Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and complete information, leading to price taking behavior.

Equilibrium Price

The market price at which the quantity of goods demanded equals the quantity supplied, leading to market stability.