Washington Wild Things

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(No Transcript)
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Group 1The Wild Things

• Ryan Callahan
• History
• Factors of Production
• Opportunity Costs
• Kristen Anders
• Supply Demand
• Elasticity
• Utility

• Jon Koch
• Long Run Short Run Costs
• Profit Maximization
• Geoffrey Royer
• Types of Firms
• Conclusions

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History

• The Washington Wild Things
• Home Field Falconi Field
• Washington, PA.
• Frontier League
• An independent minor league baseball league, with
  no affiliation with any Major League Baseball
  Team.
• Operates in the Midwest and on the East Coast.
• Formed in 1993

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What the Wild Things Do

• They are a Family Entertainment Market
• They have organized
• Fan Clubs
• Picnics
• Corporate Events / Conferences
• Concerts
• Fire Works Nights

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Factors of Production

• Land
• Labor
• Capital
• Entrepreneurship

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Factors of Production (Specifically for The Wild
Things)

• The Offices/Parking Lot (Land)
• The Players/Employees (Labor)
• The Players Skills (Human Capital)
• Falconi Field (Physical Capital)
• The Owner Decides to create his own Team
  (Entrepreneurial Activity)

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Factors of ProductionSkills Human Capital
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Opportunity Costs

• The value of the best alternative which must be
  given up in order to get something.
• Costs of The Wild Things
• Away Game Transportation
• Hotel Expenses
• Field Upkeep
• Employees Salary
• Food/Beverage

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Opportunity Costs

• Costs of People Going to the Games
• Ticket Prices- General Admission(5.00) vs.
  Premier(10.00)
• Parking
• Gas
• Concessions and Souvenirs

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Explicit vs. Implicit Costs

• Explicit Cost????
• Dollars actually paid out for a choice
• Implicit Cost????
• Value of something sacrificed when no direct
  payment is made.

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Opportunity Costs

• Explicit Implicit Costs
• Time Spent at Game (Implicit)
• Reserved Seating (Explicit)
• Sky Box Seating (Explicit)
• Concessions (Explicit)
• Parking (Explicit)
• Here is Kristen to go over Supply and Demand

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Demand

• - the relationship showing the various amounts of
  an item which buyers are willing and able to
  purchase at various possible alternative prices,
  during a given period of time.

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Ceteris Paribus Factors of Demand

• Income
• Number of Buyers
• Expectations of Buyers
• Prices of Related Goods
• Tastes

Price
Quantity
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Ceteris Paribus Factors of Demand

• Demand
• Substitutes
• Hollywood Theater
• Kennywood
• Tastes
• Win/Loss
• Sporting Season Changes

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Supply

• A relationship showing the various amounts of an
  item that sellers are willing and able to make
  available for sale at various possible
  alternative prices, during a given period of time

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Ceteris Paribus Factors of Supply

• Input Prices
• Number of Sellers
• Expectations of Sellers
• Prices of Alternative Goods
• Technology

Price
Quantity
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Ceteris Paribus Factors of Supply

• Supply
• Price of Alternate Goods
• Movies
• Kennywood
• Expectations of Sellers
• Merchandise price increase

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Elasticity

• Elastic vs. Inelastic
• How available are close substitutes
• Hollywood Theater
• Narrowness of Market
• Riverhounds
• Necessity vs. Luxuries
• Baseball is a luxury

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Utility

• What does utility have to do with baseball?

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Utility

• Utility The quantitative measure of
  pleasure or satisfaction attained from
  consuming goods and services.
• Law of Decreasing Marginal Utility
• As consumption of a good or service increases
  marginal utility decreases
• Utility of a season ticket holder

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Long Run Short Run Costs

• Upkeep of Facilities
• Players Salaries
• Merchandise/ Concessions

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Long Run and Short Run Concepts

• Short Run
  Long Run
• TC FC VC
  Building new stadium
• AVG FC VC/output
  vs.
• ATC AFC AVC Cost
  to lease stadium
• 
  Determine which makes
• more
  sense.

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Long Run Short Run Costs

• Advertising
• TV
• Radio
• Group Events
• Promotions

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7th Inning Stretch

• Please Rise and Join Us in Take Me Out To The
  Ball Game

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Advertising

• Pros
• Informs radio, TV, Sign over 70, billboards/ads
  revenue
• Promotes Resource Allocation company/attendance
  can grow
• Promotes Competition with other teams, reasons
  to go to Falconi, various alternatives
• Cons
• Persuades (subliminal perception)
• Wasteful (artificial product differentiation)
• Discourages Competition

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Profit Maximization

• Making Profit
• Ticket Prices

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Profit Maximization

• Profit total revenue total cost
• Loss TC TR Gain TR TC
• P ATC Economic Profit
• Profit made through ticket sales, park events,
  merchandise and apparel, store, revenue for
  advertising
• Costs from paying wages of players, employee
  salaries, capital, leasing of field

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Types of Firms

• Type of Market
• Washington County Baseball
• Baseball
• Pioneer League
• Family Entertainment

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Types of Firms

• Monopoly
• Narrowly Defined Market
• One Seller with no Close Substitutes
• Large Capital Requirements

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Types of Firms

• Monopolistic Competition
• Oligopoly
• Cartels
• What Type of Firm Is It?

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Types of Firms

• Perfectly Competitive
• Large Number of Buyers Sellers
• Homogeneous Products
• Easy Entrance/ Exit
• Perfect Knowledge

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What Did We Learn Today?

• Ryan Callahan
• History
• Factors of Production
• Opportunity Costs
• Kristen Anders
• Supply Demand
• Elasticity
• Utility

• Jon Koch
• Long Run Short Run Costs
• Profit Maximization
• Geoffrey Royer
• Types of Firms
• Conclusions

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Group 1

• Ryan Callahan
• Kristen Anders
• Jon Koch
• Geoffrey Royer
• Season Opens May 25, 2005 _at_ 705PM Get Your
  Tickets NOW

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