Sports Economics

So i teach a class on the economics of sports. I get asked quite a bit what that entails. The real answer is just watch Sportscenter. Some stuff really. But to give you an idea here are some questions that are on the final for undergrad students.

1. Baseball has not been convicted of violating the Sherman Antitrust Act because
a. Baseball is the national pastime
b.Baseball was the first sport to use the reserve clause
c. The Sherman Act does not apply to sports
d. Baseball is exempt from antitrust laws

2. The pay of a hockey player is so much lower than a basketball player because
a. the opportunity cost of a hockey player is so low
b. the exchange rate favors teams in canada over the US
c. Greater TV revenue increases the marginal revenue product in the NBA
d. Greater TV revenue increases the marginal physical product in the NBA

3. What lead to the formation of the NCAA
a. Attempt to establish a national champion in football
b. A way for schools to get together to make more money
c. To establish safety rules in football
d. To establish recruiting rules nationally
e. To form a monopoly and increase profits

4. What did the owners of the NFL do to increase bargaining power during the 1987 strike?
a. create a strike fund to insure income in the case of a strike
b. Negotiate TV deals to ensure revenues even during work stoppages
c. Sign replacement players
d. Enlist the help of Congress

5. Without long-term contracts sports teams have no incentive to provide team-specific human capital trainingto their players.
a. true
b. false

And finally the bigggy:
Suppose as an owner of a NFL team, you determine ticket prices (assume you are a monpolist). If the demand curve for a ticket is represented by the following equation: P=500-10Q. If the marginal cost of admitting an extra fan is constant at 20, and the stadium only holds 25 people (in thousands), what is the price you charge per ticket? How many tickets do you sale?


Whoever answers the most correctly will earn themselves a quarter, but you can name what state you want on the back.