Suppose the Softbank Hawks decide to charge 25 percent more per ticket for every home game...
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Suppose the Softbank Hawks decide to charge 25 percent more per ticket for every home game against the Nippon Ham Fighters. Assume initially that the cost of "providing" a game against the Fighters is no different than for any other team. (15 points, 5X3) a. Is this price discrimination? If so, what form of price discrimination is it, and why is it that form of discrimination. If it not, why isn't it price discrimination? b. Suppose Fighters' fans are particularly rowdy, so the Hawks have to hire extra security for a Fighters game. Assuming that the Hawks must pay $250,000 in extra security costs regardless of attendance, does your answer to (a) change? Why or why not? c. Suppose the security costs rise by $10 for every fan admitted to a Fighters game but by only $5 for every fan admitted to any other game. Does your answer to (a) change? Why or why not? Suppose the Softbank Hawks decide to charge 25 percent more per ticket for every home game against the Nippon Ham Fighters. Assume initially that the cost of "providing" a game against the Fighters is no different than for any other team. (15 points, 5X3) a. Is this price discrimination? If so, what form of price discrimination is it, and why is it that form of discrimination. If it not, why isn't it price discrimination? b. Suppose Fighters' fans are particularly rowdy, so the Hawks have to hire extra security for a Fighters game. Assuming that the Hawks must pay $250,000 in extra security costs regardless of attendance, does your answer to (a) change? Why or why not? c. Suppose the security costs rise by $10 for every fan admitted to a Fighters game but by only $5 for every fan admitted to any other game. Does your answer to (a) change? Why or why not?
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a In the first case the Softbank Hawks decides to charge an extra 25 for every ticket for any home game against the Nippon Ham Fighters Now notice that as per the information provided in the question ... View the full answer
Related Book For
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
Posted Date:
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