question archive The marginal cost of admitting an additional fan to watch the New York Knicks play basketball is close to zero, but the average price of a ticket to a Knicks game is about $125
The marginal cost of admitting an additional fan to watch the New York Knicks play basketball is close to zero, but the average price of a ticket to a Knicks game is about $125
Subject:EconomicsPrice: Bought3
The marginal cost of admitting an additional fan to watch the New York Knicks play basketball is close to zero, but the average price of a ticket to a Knicks game is about $125. From this data, we can conclude that the Knicks:
a)Rarely, if ever, sell out Madison Square Garden for home games.
b)Are engaging in perfect first degree price discrimination.
c)Have monopoly power in the market for tickets
d) Are "tanking" in an attempt to secure the first pick in the Draft
