If a game is not sold out, the marginal costs to a team accommodating one more fan is:
A) Almost infinite.
B) Half the average ticket price.
C) Essentially zero.
D) The inverse of marginal costs.

Question

Quizplus · Accepted Answer

When a game is not sold out, there are usually excess seats available, and the cost of accommodating an additional fan is almost zero. The team has already covered its fixed costs, such as stadium rent and player salaries, and accommodating one more fan will not require any additional costs. Therefore, the marginal cost of accommodating one more fan is essentially zero.

If a Game Is Not Sold Out, the Marginal Costs