Using the concept of marginal cost, explain why many of these productions have begun to offer these half-price tickets. Who do you suppose are the most and least likely customers to purchase show tickets through these discount ticket outlets? Can you think of any reasons why a production show would choose to not offer tickets in this manner?
In addition to gambling, Las Vegas is famous for its live production shows. Close to 100 shows are performed 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-of-fice ticket prices range from less than $10 for a few of the smaller shows to over $200 for some of the major productions. In recent years, a number of these shows have 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. Who do you suppose are the most and least likely customers to purchase show tickets through these discount ticket outlets? Can you think of any reasons why a production show would choose to not offer tickets in this manner?
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