The face value of a ticket to the Super Bowl was approximately $1,200 in 2011 . The game is very popular and there are a number of fans who are not able to get tickets to this game. At the same time, many fans claim that prices are too high and that the
NFL should lower the face value of the ticket prices. Would a decrease in ticket prices move the market towards equilibrium? Would it eliminate the shortage of tickets? Why or why not?
Lowering the ticket prices would not move the market towards equilibrium. The fact that there is a greater quantity demanded than quantity supplied indicates that the face value is currently below the equilibrium price. Lowering the face value would cause a more severe shortage as more consumers would want to purchase tickets at the lower price, increasing the quantity demanded. At the same time the quantity supplied would likely remain the same given the size of the stadium.
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If a firm has implicit costs as well as explicit costs
A) accounting profits are greater than economic profits. B) economic profits will always be greater than accounting profits. C) accounting profits will be equal to economic profits. D) the firm has no economic profits.
Any non-credible threat that is part of a Nash equilibrium in a sequential game cannot be played along the Nash equilibrium path.
Answer the following statement true (T) or false (F)