You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one else can manufacture athletic wear with the “Atlanta United” logo.

1. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why.

Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo

2. What would you expect to happen to the price of “Atlanta United” athletic wear? Explain why.

3. What would you expect to happen to Athleticon’s level profitability on the sale of “Atlanta United” athletic wear? Explain why.

4. It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.

Answer rating: 100% (QA)

1Athleticon will make huge profit on the sale of Atlanta United athletic wear Because Athleticon is the sole supplier of the Athletic wear with Atlant... View the full answer