Sunday, January 8, 2012
What is the cost per ticket to a professional basketball team that offers 50 “free” tickets to an orphanage?
What is the cost per ticket to a professional basketball team that offers 50 “free” tickets to an orphanage? Does it matter for what game the tickets are offered? Explain.|||Ignoring the cost to print the tickets the Q goes to opportunity cost. So, was the game a likely sell-out? If the answer is no then the marginal revenue given up to offer "free" tickets is zero. If the tickets were reserved, the game sold out and the tickets could have been sold for $ 5,000 then the lost revenue is $5,000.
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