Related to the Economics in Practice in this section n addition o gambling Las V
ID: 1151817 • Letter: R
Question
Related to the Economics in Practice in this section n addition o gambling Las Vegas is amous its e product on o vs. ose to 100 o sare pe ormed at various venues across the city on any given day, and many of the shows are multi-million dollar productions with months-long waiting lists for the best seats. Box office ticket prices range rom ess han $10 or a ew o he smaller sho s o over S200 for some o he a productions n recent years a num ??? hese sho shave begun offering tickets for sale at half price through discount ticket outlets. These half-price tickets are only available on the day of the show, on a first-come, first-served basis. Using the concept of marginal cost, explain why many of these productions have begun to offer these half-price tickets Once a show has been scheduled and sufficient seats sold to make it V to stage, the marginal cost of filling remaining seats is probably Even at half-price, the added ?I will exceed the negligible marginal cost of filling the remaining seats, enabling the shows promoter to enhance its Who among the following do you suppose are the least-likely customers to purchase show tickets through these discount ticket outlets? (Check all that apply.) A. Individuals traveling with an ample entertainment budget. B. People having a rigid vacation itinerary and thus needing much certainty in their schedule. C. People who are very 'picky' about seat quality (location). D. Individuals who are very responsive to price. Can you think of any reasons why a production show would choose to not offer tickets in this manner? (Check all that apply.) O A. Ticket sales at regular prices may decline. O B. The shows are always sold out in advance. O C. Perceptions of the show's quality may suffer. O D. All of the above are plausible.Explanation / Answer
Please provide the drop down list of options for accurate answers. But following is the list of answers close in meaning to the word in the drop down.
1. Reach 2. negligible/ low 3. revenue/ money 4. sale/ total revenue
People least likely to purchase tickets through these discount tcket outlets will include B and C because even after ample budget, one seeks to look for cuts wherever possible and people responsive to prices would definitely look for fall in prices. It is only people with no risk taking attitude who wouldn't want to purchase tickets through this route.
A production show might choose not to offer tickets in this manner because of D i.e all of the above reasons, the availability of tickets at half price might lead to people waiting for these tickets alone affecting the demand for tickets at regular prices and also people can think of the show's quality to be low if tickets are sold at lesser price