Percentage change in rooting of fans.
Explanation of Solution
The NFL, NBA, and MLB are the main sports events or leagues that are prominent in the US economy. The NFL stands for Football, NBA for basketball, and MLB for baseball. These are the main sports leagues in the US economy that has a
When there are two teams in the major leagues from the same place, the sports fans will prefer the team which has the highest success rate in the matches. It is evident from the history of the NFL, NBA, and MLB that the number of fan followers and viewers in the gallery decreased by 10 percent to more than 40 percent from 2008 to 2018. This is not the case with all the teams that play in the leagues. The teams with higher success rates do not face such drop issues. That means the performance of the team determines the number of viewers and fans for a team.
The percentage of fans rooting their interest in one of the teams will remain rooted to the team until when the team maintains a successful streak or keeps winning often in the leagues. When the team fails to fulfill these demands from the fans, the fans will start to change their rooting interests toward the other team. This is because the psychology of the people does not allow them to spend too much on the tickets and argue for the team that ends up failing in the matches.
The change in the percentage of fans rooting their interest between the two teams that are present in the NFL, NBA, and MLB cannot be determined, as there will be very strong fans and weak fans for each team. The strong fans will remain rooted to their team whatever happens in the leagues, whereas the weak fans will keep shifting their rooting between the teams based on their performances in the leagues.
Monopoly: Monopoly is a market structure where there is only a single seller in the market and there are no close competitors present in the market. The complete market power will be with the single producer and the price will be determined by the seller.
Want to see more full solutions like this?
Chapter 4 Solutions
The Economics of Sports
- Outline the principles of opportunity cost and comparative advantage. Describe how these principles can be applied to address the scarcity of resources in a real-world scenario involving a company or industry.arrow_forwardNot use ai pleasearrow_forward3. Consider the case of everyone being wealthier in the future, such as from a positive productivity shock (computers, internet, robotics, AI). A. Begin from the baseline preferences and endowments. Give both people an endowment of 1000 pounds for the first period and 1100 pounds for the second. AI increases the supply of second period goods by 10%. Note that there is now a total of 2000 pounds in the first period and 2200 pounds in the second. Determine the equilibrium interest rate. r = % B. Begin from the baseline preferences and endowments. Give both people an endowment of 1100 pounds for the first and 1100 pounds for the second periods. AI increases the supply in all periods by 10%. Note that there are now 2200 pounds in the first period and 2200 pounds in the second. Determine the equilibrium interest rate. r = % C. Explain how productivity and the real rate are connected. Write at least five sentences.arrow_forward
- Jim's Bank Account for the Year to 30 April 2008: We will start by calculating the balance of the business bank account, using the transactions provided. Opening Balance: Jim initially deposited €150,000 into his business bank account on 1 May 2007. Transactions: Receipts: Cash Sales (May 2007 to April 2008): €96,000 Credit Sales (Business customers): €19,600 (Note: This amount is not yet received as it is on credit, but it will be included in the Income Statement and not the bank balance at this stage.) Bank receipts from credit customers (amount owed at 30 April 2008): €6,800 Total Receipts:€96,000 (Cash Sales) + €6,800 (credit customer payments) = €102,800 Payments/Expenditures: Lease Payment (Paid in advance for five years): €50,000 Shop Fitting: €10,000 Assistant’s Wages: €250 per month × 12 months = €3,000 Telephone expenses: €800 Heat & Light expenses: €1,000 Jim’s withdrawals for personal expenditure: €1,000 × 12 months = €12,000 Accounting Fee (after the year-end):…arrow_forwardSolve the problemarrow_forwardWith explanation and asap pleasearrow_forward
- Not use ai pleasearrow_forwardNot use ai pleasearrow_forwardThe African Continental Free Trade Area is a key strategic agreement undertaken by the African Union in recent years. Choose a case from amongst the countries listed below and discuss the challenges and opportunities which exist for this country in entering into this agreement. You can choose a particular industry or product which the country exports/imports to make your case. Lesotho Ghana Mozambiquearrow_forward
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning