HOW WOULD A YEA SAYER RESPOND TO THIS DISCUSSION POST? ****NO PLAGIARISM PLEASE*
ID: 1204953 • Letter: H
Question
HOW WOULD A YEA SAYER RESPOND TO THIS DISCUSSION POST? ****NO PLAGIARISM PLEASE**************
I chose the trade under the monopoly. A monopoly is when only one firm has the market and there is no competition for them. This could be on a national level or even on a local level. Local could be a small town and there is only one grocery store for everybody to use. they really have no choice but to use that grocery store. I look at the Milwaukee Admirals Hockey team as a monopoly. They are an AHL (American Hockey League) team which is considered professional. They are a step below the NHL (National Hockey League). They are the only team in Milwaukee so they have the entire market of Milwaukee. They have the ability to set their price without having to worry about competition moving in. They give their players contracts to get them to play for the team. They also give out discounts for certain things like for children. There is a different price for kids, the tickets are three dollars less than the regular ticket. They also do family packs which help to bring in parties of at least four. This will save the family about forty dollars a game, but it is limited to certain sections. They also offer a deal on tickets if you bring in a party of ten or more people. These are all for a single game, and there are season ticket deals too. The stadium would also be a monopoly. If you want something to eat or drink you have to purchase it from them. They do not allow carry ins for food or drinks. They set their prices to sell the most at the right price. Being in a smaller market their prices are lower than in Chicago for the Wolves AHL team. There are more people in Chicago so the price per ticket is higher than in Milwaukee. Most games in Milwaukee the upper deck is not open so they save money not having to pay people to operate the vending areas up there.
Explanation / Answer
A YEA SAYER THAT IS A PERSON WITH OPTIMISTIC APPROACH AND CONFIDENT ENOUGH
The Milwaukee Admirals Hockey team operates as a monopoly,as it is the only one team in the entire market of milwaukee. Since they are one step below to NHL,and professional enough it draws them closer to enjoy a larger share of market. They have been charging high prices but at the same time offering discounts to larger groups or school children so as to increase their revenue. It is very much clear that a monopolist has to lower down the price in order to increase the sales,but higher prices doesnt mean no revenue bcoz it is the only team avilable so elasticity of demand for its services will be less than 1.
On the other hand Wolves AHL team in Chicago charges higher prices,because it is in a big city which attracts more people ,there would be more demand in Chicago and people have no option to go anywhere so it can sell at any price as the population would be ready to pay. Here also elasticity of demand is less than one.
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