Question

Which of the new stadiums has seen the biggest increase in attendance? SNAPSHOT Sunk Costs:If You Build It, They Will Come Replacing an old stadium with a new one is sometimes controversial. People often misunderstand sunk costs and argue for continuing with a stadium until it's completely worn down. But economics tells us not to focus on the sunk costs of the old stadium's construction. Instead, we should compare the marginal benefit of a new stadium to the marginal cost of demolition and new construction. Old Stadium New Stadium | 10,000 Seats Capacity Attendance 62,000 |Attendance 53,000 46,000 44,000 42,000 93 37,500 429 62 60 illi PHILADELPHIA PHILLIES MIAMI MARLINS CINCINNATI REDS

Answer 1

Philadelphia Phillies Initial attendance 4210 x 62000 226040 New & 93% x 44000 2 40920 to change in attendance 40920-26040100 26040 z 51.140, New Miami Martins Initial attendances 39/- X 46000 - 17940 = 60% X 37,500 = 22500 lo change im attendance = 22500-17940 x 100 17940 z 25.42). Cincinnati Reds Orichial attendance = 414 X 53000 - 24910 New - 62) X42000 2 26040 % change in attendance = 26040-24910 10 24.54% V 24910 philadelphia has sun the biggest increase in attendanu.