Suppose That Justin Timberlake Sells 10,000 Tickets to a Concerts

question 428

Multiple Choice

Suppose that Justin Timberlake sells 10,000 tickets to a concerts at $480 each. If the equilibrium price is $600 per ticket for a fixed supply of 10,000 tickets, what is the value of the additional economic rent that Timberlake could earn if he charged the market clearing price?

• A) $12.00
• B) $1.2 million
• C) $3 million
• D) $1.8 million

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Definitions:

Cosmopolitanism

A philosophy that considers all humans as part of a single community based on a shared morality, regardless of national or cultural boundaries.

Globalism

The attitude or policy of placing the interests of the entire world above those of individual nations.

McDonaldization

A term used by sociologist George Ritzer to describe the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world.

Predictability

The ability to foretell future events or behaviors based on patterns or known information.