When a sports team hires an expensive new player or builds a new stadium, you of
ID: 1112648 • Letter: W
Question
When a sports team hires an expensive new player or builds a new stadium, you often hear claims that ticket prices have to rise to cover the new, higher cost. Let’s see what monopoly theory says about that. It’s safe to treat these new expenses as fixed costs: Something that doesn’t change even when the number of fans in the stadium rises or falls. Treat the local sports team as a monopoly in this question, and to keep it simple, let’s assume there’s only one ticket price.
It seems common in real life for ticket prices to rise after a team raises its fixed costs by building a fancy new stadium or hiring a superstar player: In recent years, it’s happened in St. Louis and San Diego’s baseball stadiums. Why does a profit-maximizing sports team raise the ticket price when it hires a new superstar or builds a new stadium?
24. Just based on self-interest, who is more likely to support strong patents on pharmaceuticals: young people or old people? Why? young people, because they have a longer time horizon to enjoy the benefits of newly invented drugs young people, because they have higher salaries and can better afford patented drugs old people, because they're more likely to be in poor health and will use patented drugs old people, because they're more likely to vote for stronger legislation supporting patentsExplanation / Answer
24. young people, because they have higher salaries and can better afford patented drugs
Because patented drugs are costly and young people having higher income can afford them but old having no regular income flow will oppose them .
25. people who want to play new, advanced games, because they want to encourage innovation by video game companies
Because if companies has patent and copyright it will obviously charge higher prices for its product so we can outright reject options of lower price but if company has copyright it will encourage innovation by more firms.
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