During Its Run on Broadway, the Play the Producers Regularly

question 157

Multiple Choice

During its run on Broadway, the play The Producers regularly sold out all available tickets at the St.James Theater.The theater could have raised ticket prices from $75 to $125 and still sold all available tickets but chose not to do so.The best explanation for this decision is

• A)theater owners are unaware of the elasticity of demand for Broadway shows.
• B)theater owners do not want to raise their prices on weekends, when demand is high, and then have to lower prices during the week, when demand is lower.
• C)firms sometimes give up profits in the short run to keep their customers happy and increase their profits in the long run.
• D)theater owners are not motivated to maximize their profits.

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Definitions:

Passing-off Action

A legal remedy used to protect the goodwill of a business from being misrepresented by others, typically in trademark cases.

Copyright Protection

Copyright protection is a legal right granted to creators of original works, such as literature, music, and art, to control the use of their work, including reproduction, distribution, and adaptation, for a specific period of time.

Non-disclosure Clauses

Legal provisions in a contract that prohibit the sharing of confidential information with unauthorized parties.

Fiduciary Duty

An obligation to act in the best interest of another party, such as the duty of a trustee towards their beneficiaries.