The Local Baseball Team Owner Hires You to Help Maximize

question 42

Multiple Choice

The local baseball team owner hires you to help maximize the team's profits.You are told that costs are constant because enough help is always hired for a full stadium, so assume your task is to maximize revenues from ticket sales.Your advice to the owner should be to

• A) Set the ticket price in the inelastic region of the demand curve in order to increase revenues.
• B) Raise the price as high as possible until the number of tickets sold begins to fall.
• C) Set the price as low as possible to make sure the stadium is always full.
• D) Set the price of tickets at the unitary elasticity price.

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Definitions:

Exculpatory Clause

A provision in a contract that absolves one party of liability for any wrongdoing related to the agreement.

Serious Crime

A criminal offense considered severe due to its nature, often involving significant harm to individuals or society and carrying heavy penalties.

Noncompetition Clause

A provision in a contract that prohibits an individual from competing with their former employer for a certain period after leaving the company.

Unduly Burdensome

Imposing an excessive load, effort, or demand, considered unreasonable under the circumstances.