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:

External Causes

Factors outside of an individual's or organization's control that can impact performance, outcomes, or operations.

Internal Causes

Factors within a person, such as attitudes, traits, or abilities, that influence their behavior.

Self-Fulfilling Prophecy

A belief or expectation that influences behaviors in a way that causes the belief to become a reality.

Attribution Theory

A theory focused on how people interpret events and how this relates to their thinking and behavior, specifically how they attribute causes to events and other people's actions.