The General Manager of the Local Hockey Team Hires You

question 319

Multiple Choice

The general manager of the local hockey team hires you to help maximize the team's total revenue. She explains that most costs are constant because the entire staff must always be available in case the arena reaches its maximum capacity. If your task is to maximize total revenue from ticket sales, then your advice to the manager would be to set the ticket price

• A) in the inelastic region of ticket demand in order to increase total revenue.
• B) in the elastic region of ticket demand in order to increase total revenue.
• C) as close as possible to the point where the price elasticity of demand equals 1.
• D) very low to make sure that the arena is always full.

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Definitions:

Protected Class

Groups of people legally protected from discrimination on the basis of characteristics such as race, religion, national origin, gender, and more.

Employment Opportunities

Prospects or openings available in the job market for individuals to find work or advance their careers.

At-Will Employment

An employment arrangement where either the employer or the employee can end the employment at any time, for any reason that is not illegal, with or without notice.

United States

A country comprised of 50 states, a federal district, five major self-governing territories, and various possessions, known for its large economy and influential culture.