At a college basketball game with only 25 seconds left, the home team, which is behind by

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At a college basketball game with only 25 seconds left, the home team, which is behind by 1 point, steals the ball and calls time-out. As the home team’s band director gets ready to play part of the school’s fight song to get the fans fired up behind the team, she gets a message over her headset telling her that there is one more commercial to do before the game ends. As the scoreboard flashes the name of a local bank, the gym’s 110-decibel sound system blares out a prerecorded voice describing the bank’s low interest rate loans and top-notch customer service. The commercial then ends just before the play begins. Across the nation, college athletic departments have found that they can charge up to $15,000 per minute to advertisers for a commercial played to the fans at the arena. Thus, many bands find that they are getting to play less—even in 15-second segments called “shorts”—because even 15-second commercial time slots can be sold to advertisers. If the average minute of time at a college game can be sold for $10,000 in advertising revenues, what is the opportunity cost to the college of a 15-second band “short?”

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