Econ 2447 Sports Economics
First exam Spring 2018
T. Miceli
Multiple choice (4 points each). Write your answer in the space provided.
_d_1. Sports econ
... [Show More] omics is concerned with
(a) The business of professional and big-time college sports
(b) The determination of player salaries
(c) The structure of the contest on the field
(d) All of the above
Because sports economic focus on its relationship to sports. Such as the business of
professional and big-time college sports, the determination of player salaries and the
structure of the contest on the field. The development of the sports sector has a positive
impact on the economy. Not only in producing sports goods but as a whole. It need more
workers and facilitators especially on big sports event so they must pay for it.
_c_2. Win maximization
(a) Is never the goal of a professional sports team
(b) Is always the goal of a professional sports team
(c) Should result in a higher winning percentage compared to profit maximization, all
else equal
(d) Should result in the same payroll as profit maximization, all else equal
_b_3. Marginal revenue is
(a) Always equal to the price
(b) Equal to the increment in revenue from selling one additional unit of output
(c) Everywhere above the demand curve
(d) An upward sloping curve
Marginal revenue (MR) is the increase in revenue that results from the sale of one
additional unit of output. It is important because it measures increases in revenue from
selling more products and services. Marginal revenue follows the law of diminishing
returns. So, the correct option is B "Equal to the increment in revenue from selling one
additional unit of output".
_c_4. A monopolist maximizes profit by
(a) Setting price equal to marginal cost
(b) Setting marginal revenue equal to zero
(c) Setting marginal revenue equal to marginal cost
(d) None of the above
Monopolist is the sole operator in the market and can charge any price.
Under monopoly seller maximize profit at marginal revenue = marginal cost.
ANSWER : c [Show Less]