Major-league baseball clubs can be considered profit-maximizing monopolies if they operate in the elastic portion of their demand curve, as suggested by Alexander (2001). This is a relevant test because if a firm is operating in the elastic portion of the demand curve, it can raise its price and increase profit. Revenue is maximized when elasticity equals minus−1 . Thus, the correct answer is option A.
According to Alexander, if a firm is operating in the elastic portion of its demand curve, it is likely to be a profit-maximizing monopoly. This is because the firm can raise its prices and still increase its profit, as demand is more sensitive to price changes in the elastic portion of the curve.
If a baseball club were maximizing revenue, the elasticity would be -1. This means that the club would need to set its price at a point where a small increase in price would lead to a proportional decrease in demand. This would enable the club to maximize its total revenue.
Therefore, based on Alexander's test, it can be argued that major league baseball clubs are profit-maximizing monopolies, as they have significant control over ticket prices and operate in the elastic portion of their demand curve.
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Complete Question:
Are major-league baseball clubs profit-maximizing monopolies? Some observers of this market have contended that baseball club owners want to maximize attendance or revenue. Alexander (2001) says that one test of whether a firm is a profit-maximizing monopoly is to check whether the firm is operating in the elastic portion of its demand curve (which he finds is true).
Why is that a relevant test? What would the elasticity be if a baseball club were maximizing revenue?
A. If a firm were operating in the elastic portion of the demand curve, it could raise its price and increase profit. Revenue is maximized when elasticity equals minus−1.
B. If a firm were operating in the inelastic portion of the demand curve, it could raise its price and increase profit. Revenue is maximized when elasticity equals minus−1.
C. If a firm were operating in the elastic portion of the demand curve, it could raise its price and increase profit. Revenue is maximized when elasticity equals 0.
D. If a firm were operating in the inelastic portion of the demand curve, it could raise its price and increase profit. Revenue is maximized when elasticity equals 0.
Andrew will choose loan s - which have a nominal rate of 10.755%, compounded annually.
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Answer:
Genuine Asian Sushi House Company
Explanation:
Franchise is the term which is defined as the authorization that is granted by the company or a government to a person or an individual or group enabling them for carry out the particular commercial activities.
So, in this situation, Fong had an agreement to buy the franchise from the Genuine Asian Sushi House Company. Therefore, the determination of the territory will be served and it is to be made by the Genuine Asian Sushi House Company as they are the one who is granting the franchise.
Answer:
a hazard risk management plan
To determine how much Ricardo will owe after n months, we must account for his down payment and his monthly payments on the tablet. Subtracting the down payment from the total cost, we start with an initial debt of $900. Then, through monthly payments of $50, this debt is decreased, resulting in the equation: y = -50n + 900.
The subject matter is looking for an equation in slope-intercept form to determine how much Ricardo will still owe after making a down payment and monthly payments for n months on a tablet. You first should subtract the down payment from the overall cost of the tablet to understand the total amount Ricardo will owe after making the down payment. Given the tablet costs $1,150 and Ricardo's down payment is $250, his initial debt (y-intercept) is $1150 - $250 = $900.
After that, Ricardo will start making monthly payments. These payments represent a monthly decrease in the amount he owes, so they are represented by a negative slope. Since he'll be paying $50 each month, the equation to find the principal balance remaining (y) after 'n' months would be: y = -50n + 900.
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A brief form of communication typically used in businesses is known as a memo. Memos are concise and direct pieces of communication used for internal dissemination of information, such as instructions, updates, or notifications.
In the business environment, brief written communication is usually referred to as a memo, short for memorandum. Memos are used for various reasons such as notifying employees of changes, providing updates, and giving instructions. It's a form of communication that is both concise and direct, typically used within an organization to communicate information quickly and efficiently.
Memos have an important role in maintaining effective communication in a work environment. While emails are also used for internal communication, memos tend to be more formal and are often used when the information being communicated is of significant importance or needs to be documented for future reference.
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False
Answer:
The correct answer is included in the pic below.
Explanation:
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