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Quiz_Homework1.pdf

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 1/13

Homework #1 Started: Jan 31 at 9pm

Quiz Instructions You may submit the homework as many times as you like and Canvas will keep your highest score.

Use the following graph of the market for Premier League broadcast games for the next 11 questions.

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 2/13

1 ptsQuestion 1

What is the quantity of games that will be broadcast at the competitive equilibrium?

1 ptsQuestion 2

How much will the Premier League receive for each broadcast game at the competitive equilibrium?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

1 ptsQuestion 3

What is consumer surplus at the competitive equilibrium?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

2/18/2020 Quiz: Homework #1

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1 ptsQuestion 4

What is producer surplus at the competitive equilibrium?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

1.5 ptsQuestion 5

What is the economic profit that the Premier League earns at the competitive equilibrium?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

1.5 ptsQuestion 6

What is the quantity of games that will be broadcast if the Premier League can act as a monopoly when negotiating its TV deal?

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 4/13

1.5 ptsQuestion 7

How much will the Premier League receive for each broadcast game if the Premier League can act as a monopoly when negotiating its TV deal?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

1.5 ptsQuestion 8

What is consumer surplus if the Premier League can act as a monopoly when negotiating its TV deal?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

1.5 ptsQuestion 9

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 5/13

What is producer surplus if the Premier League can act as a monopoly when negotiating its TV deal?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

1.5 ptsQuestion 10

What is the economic profit that the Premier League earns if it can act as a monopoly when negotiating its TV deal?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

1.5 ptsQuestion 11

What is the deadweight loss to society if the Premier League can act as a monopoly when negotiating its TV deal?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 6/13

Use the following information for the following 5 questions.

Assume that there are three types of teams in Major League Baseball: large market, medium market and small market. Each of these types has ten teams for a total of 30 teams. The demand function for each type of team is:

D : Q = 110 - 2P

D : Q = 80 - 2P

D : Q = 70 - 2P

Assume the marginal cost of a national advertisement is $610.

L

M

S

1 ptsQuestion 12

What is the price Major League Baseball will pay for each advertisement?

Hint: entery your answer without a $ sign

For example, if the answer is $800, enter 800

1.5 ptsQuestion 13

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 7/13

What is the number of advertisements Major League Baseball will buy as a league?

1.5 ptsQuestion 14

How much will each large market team pay for its share of the advertising budget?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

1.5 ptsQuestion 15

How much will each medium-market team pay for its share of the advertising budget?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 8/13

1.5 ptsQuestion 16

How much will each small-market team pay for its share of the advertising budget?

Hint: enter your answer without a $ sign

For example, if the answer is $25,640, enter 25,640

Use the following information for the next 10 questions.

Assume that Charcandrick West signs a new contract with the Kansas City Chiefs (NFL team) that covers 2017 - 2023. The terms of the contract are:

2017 salary: $2 million

2018 salary: $6 million

2019 salary: $7 million

2020 - 2023 salary: $9 million

Signing Bonus: $10 million

Option Bonus (paid in 2018): $10 million

The salary for 2017 - 2020 is guaranteed.

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 9/13

1.5 ptsQuestion 17

What is the salary cap amount for 2017?

Hint: enter answer in millions and without a $ sign

Example: if the answer is $9 million, enter 9

1.5 ptsQuestion 18

What is the salary cap amount for 2018?

Hint: enter answer in millions and without a $ sign

Example: if the answer is $9 million, enter 9

1.5 ptsQuestion 19

What is the salary cap amount for 2019?

Hint: enter answer in millions and without a $ sign

Example: if the answer is $9 million, enter 9

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 10/13

1 ptsQuestion 20

What is the salary cap amount for 2020?

Hint: enter answer in millions and without a $ sign

Example: if the answer is $9 million, enter 9

1 ptsQuestion 21

What is the salary cap amount for 2021?

Hint: enter answer in millions and without a $ sign

Example: if the answer is $9 million, enter 9

1 ptsQuestion 22

What is the salary cap amount for 2022?

Hint: enter answer in millions and without a $ sign

Example: if the answer is $9 million, enter 9

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 11/13

1 ptsQuestion 23

What is the salary cap amount for 2023?

Hint: enter answer in millions and without a $ sign

Example: if the answer is $9 million, enter 9

1 ptsQuestion 24

Assume the Chiefs cut Charcandrick West in the offseason between 2019 and 2020 (pre-June 1 cut). What is the amount that will count against the salary cap for the Chiefs for 2020?

Hint: enter answer in millions and without a $ sign

Example: if the answer is $9 million, enter 9

1 ptsQuestion 25

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 12/13

Assume the Chiefs cut Charcandrick West in the offseason between 2021 and 2022 (pre-June 1 cut). What is the amount that will count against the salary cap for the Chiefs for 2022?

Hint: enter answer in millions and without a $ sign

Example: if the answer is $9 million, enter 9

1 ptsQuestion 26

Assume the Chiefs cut Charcandrick West in the offseason between 2022 and 2023 (pre-June 1 cut). What is the amount that will count against the salary cap for the Chiefs for 2023?

Hint: enter answer in millions and without a $ sign

Example: if the answer is $9 million, enter 9

1 ptsQuestion 27

Using the old draft pick point system (Jimmy Johnson) which of the following would be a reasonable price to pay to move up from the 18th to the 10th pick in first round of the NFL draft?

2/18/2020 Quiz: Homework #1

https://k-state.instructure.com/courses/89410/quizzes/223110/take 13/13

Quiz saved at 12:31am

18th pick of 2nd round (50th overall pick)

22nd pick of the 3rd round (96th pick overall)

No answer text provided.

2nd pick of second round (34th overall) plus the 32nd pick of 2nd round (64th overall pick) and

1 ptsQuestion 28

18th pick of 6th round (178th pick overall)

1st pick of 5th round (129th pick overall)

10th pick of 2nd round (42nd pick overall)

4th pick of 3rd round (68th pick overall)

Using the career performance value chart from Kevin Meers, which of the following would be the most reasonable price to pay to move up from the 18th to the 10th pick in first round of the NFL draft?

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