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Definition
| The difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e. the market price). |
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Definition
| The action of selling the same product at different prices to different buyers, in order to maximize sales and profits. |
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| Price Elasticity of Demand |
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Definition
| Measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price when nothing but the price changes. |
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Definition
Represents the change in an individual's or economy's income and shows how that change impacts the quantity demanded of a good or service.
As a person’s income rises, all else equal, he would respond by taking more leisure. |
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| Profit Maximization For Labor |
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Definition
| Hire workers up to the point where the marginal revenue product is equal to the wage rate. |
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| Statistical Discrimination |
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Definition
| Inequality may exist and persist between demographic groups even when economic agents (consumers, workers, employers, etc.) are rational and non-prejudiced. |
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Definition
| Temporary work stoppage or denial of employment initiated by the management of a company during a labor dispute. |
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Definition
| Process of reasoning backwards in time, from the end of a problem or situation, to determine a sequence of optimal actions. |
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| Monopsonistic Exploitation |
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Definition
| Monopsonists hire less labor than competitive firms, and workers are paid less than the value of their marginal products, this is what the difference is referred to. |
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Definition
| Payoff they can guarantee themselves by not participating in a bargain. |
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Definition
| The number of people who participate in or attend an event. |
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Term
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Definition
Economic condition that occurs when the difference between a firm's total revenue and total cost is equal to zero.
Minimum level of profit needed for a company to remain competitive in the market. |
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Term
| Price Elasticity of Demand Formula |
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Definition
| (Change in Quantity/ Change in Price) * (Price / Quantity) |
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Term
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Definition
| Measures the level of talent on display... minors vs. majors (ex: Red Wings level is higher than the Griffins). |
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Term
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Definition
| Measures the teams who are playing each other's competitive balance (ex: Michigan vs. State's level would be higher than State vs. Western). |
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Term
| Are fans more willing to watch a game with Absolute Quality or Relative Quality? |
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Definition
| Relative Quality, because they like close matches. |
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Term
| What acts as the enforcer of cooperation in College Sports (low recruiting costs)? |
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Definition
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Term
| What enforces the NCAA's monopsony power over student-athletes? |
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Definition
| By enforcing low recruiting costs. |
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Term
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Definition
| An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition. |
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Term
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Definition
A large buyer, not a seller, controls a large proportion of the market and drives prices down.
Occurs when a single firm has market power through its factors of production. |
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Term
| Increased wage means a higher income, and since leisure is a normal good, the quantity of leisure demanded will go...? |
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Definition
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Term
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Definition
| A higher wage induces a greater quantity of labor supplied. |
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Term
| When the quantity of leisure demanded goes up...? |
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Definition
| There is a reduction in the quantity of labor supplied. |
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Term
| Backward Bending Supply Curve Of Labour |
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Definition
| Graphical device showing a situation in which wages increase beyond a certain level, people will substitute leisure (non-paid time) for paid worktime and so higher wages lead to a decrease in the labour supply and so less labour-time being offered for sale. |
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Term
| Midpoint Formula For Price Elasticity Of Demand |
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Definition
| ((Q2-Q1)/(Q2+Q1)/2)/((P2-P1)/(P2+P1)/2) |
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Term
| If consumer surplus is unable to balance the cost of the stadium subsidy, then..? |
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Definition
| Additional benefits must be identified in order to justify the cost of the subsidy. |
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Term
| On a graph, consumer surplus can be shown as...? |
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Definition
| The area under the demand curve and above the prevailing market price. |
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Term
| What is a good example of price discrimination in sports? |
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Definition
| Sports teams hold back a portion of tickets and “re”sell the tickets at (frequently, they would hope) much higher prices in the secondary ticket market. |
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Term
| Backward Bending Supply Curve Of Labour in Sports |
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Definition
| When an athlete retires after their contract ends, because leisure is now being substituting work time, because they feel they have worked enough. |
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Term
| Marginal Revenue Product of Labor Formula |
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Definition
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Term
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Definition
| Change in Output / Change in Labor |
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