A. Assume that an NFL team’s raw gate revenue is $85 million, and the sample average of league gate revenues is $60 million. After adjusting for gate-sharing, what is this team’s final gate revenue?

B. In the lectures, we discussed the following sabermetric estimates: a marginal stolen base creates 0.16 runs; getting caught stealing has a marginal effect of -0.38 runs. Assume that the current runner on first has been successful in 63.4% of his historical stolen base attempts. Should we have this runner steal? Explain.

C. Assume that a pro team plays in a 50,000-seat stadium, and it faces the inverse demand curve p=90-q/1000, where p is the price per ticket and q is the quantity of tickets sold. The marginal cost of a seat is zero. Calculate the monopoly price and quantity. What is the deadweight loss? Draw a picture to illustrate this situation.

Answer rating: 100% (QA)

SOLUTION A NFL teams raw gate revenue 85 million 60 million Avg gate revenue 6040 is sharing 60 of 6... View the full answer