According to the Application about setting the price of tickets for Major League Baseball games,due to the marginal revenue from ticket sales for a typical Major League Baseball team,the team could increase total revenue from ticket sales by:
A)increasing the price of tickets and increasing the quantity of tickets sold.
B)decreasing the price of tickets and increasing the quantity of tickets sold.
C)increasing the price of tickets and decreasing the quantity of tickets sold.
D)decreasing the price of tickets and decreasing the quantity of tickets sold.

Question

Quizplus · Accepted Answer

The marginal revenue from ticket sales for a typical Major League Baseball team is likely to be negative after a certain level of ticket sales due to diminishing returns. Therefore, increasing the price of tickets and decreasing the quantity of tickets sold will allow the team to maximize revenue by finding the optimal price point where marginal revenue is zero. This is known as price discrimination, where different groups of customers are charged different prices for the same product or service. However, it is important to note that finding the optimal price point may require extensive market research and analysis of consumer behavior.

According to the Application About Setting the Price of Tickets