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Read the news clip, then answer the following questions. Ticketmaster\'s near mo

ID: 1110564 • Letter: R

Question

Read the news clip, then answer the following questions.

Ticketmaster's near monopoly challenged as technology changes

In the 1990s, to see Michael Jordan or Garth Brooks live you had to buy the ticket through Ticketmaster, or from a scalper. Today, Ticketmaster has merged with concert promoter Live Nation and now controls the sale of tickets to sports and music events. Competitors have entered the market, and events tickets are now sold through Internet auction markets.

The increased competition in the sale of tickets will ______ the service fee component of the price and ______ the efficiency of the market.

A.lower; decrease

B.raise; decrease

C.lower; not change

D.lower; increase

E.raise; increase

Scalpers will ______.

A.have difficulty surviving

B.thrive

Explanation / Answer

Ans:

1) Option D

lower; increase

The increase in the competition will decrease the price and increases the performance of the services.

2) Option A

have difficulty surviving

Since scalper has not extended the scope of the business the increase in the competition and decrease in the prices will make scalpers survival difficult.