Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Chapter 13, Problem 20CTQ

Why is a football game on ESPN a quasi-public good but a game on the NBC, CBS, or ABC is a public good?

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The National Hockey League decides to put a new franchise in Hamilton which is close to existing teams in Buffalo and Toronto. Which of the following best describes the impact of this decision? Select one: a. product-variety externality, which harms consumers b. business-stealing externality, which benefits consumers c. product-variety externality, which benefits consumers d. business-stealing externality, which harms consumers
Why is a football game on ESPN a quasi-public good but a game on the NBC, CBS, or ABC is a public good? How are over-the-air broadcasters (NBC, CBS, ABC) able to overcome the free rider problem?
Describe possible positive and negative externalities created by a professional sports team. Use a graphical model to show why in the case of such externalities the private market will typically not produce the socially optimal quantity.

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