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Chapter 1: Problem 13

Suppose that your college decides to give away 1,000 tickets to the football game against your school's biggest rival. The athletic department elects to distribute the tickets by giving them away to the first 1,000 students who show up at the department's office at 10 A.M. the following Monday. a. Which groups of students will be most likely to try to get the tickets? Think of specific examples and then generalize. b. What is the opportunity cost to students of distributing the tickets this way? c. Productive efficiency occurs when a good or service (such as the distribution of tickets) is produced at the lowest possible cost. Is this an efficient way to distribute the tickets? If possible, think of a more efficient method of distributing the tickets. d. Is this an equitable way to distribute the tickets? Briefly explain.

Short Answer

Expert verified
The most likely students to try getting the tickets are those with interest, time availability, and potential beneficial reasons. The opportunity cost to students is whatever they are having to give up to be able to stand in line at that time. Though this method might be cost-effective for the college, it isn't necessarily the most efficient as it doesn't consider students' individual valuations or time. An online sale or lottery could be more efficient. This distribution might not be equitable as it favours students who can make themselves available at a specific time.

Step by step solution

01

Identifying the most likely student groups

Groups likely to try getting the tickets would be ardent football fans, enthusiasts who look forward to school activities, or those who follow the rivalry keenly. Students who have spare time around 10 A.M., or even those who might want to sell these free tickets for a profit, would also be likely to try. To generalize, students with interest, time availability, and potential benefit from these tickets would be the likely candidates.
02

Calculating the opportunity cost

The opportunity cost for students in this situation is what they are giving up to get these tickets. This could be a lecture they miss, the chance to sleep in, the time they could have spent studying or socializing or any other activity that they give up to stand in line for these tickets.
03

Evaluating productive efficiency

From the perspective of the college, giving away tickets to the first 1,000 students who show up involves minimal cost. However, this isn't necessarily the most efficient way, as it doesn't consider students' individual valuations for the tickets and the time costs involved. A more efficient method might be to sell the tickets online or conduct a lottery, which could minimize the time cost for students and resources spent managing the distribution.
04

Assessing equity of ticket distribution

This way of distribution might not be equitable as it favours those who have time to line up at 10 A.M., potentially excluding others who may have classes or work commitments at that time. It might not be fair to students who are equally willing to attend the game but are unable to physically stand in line due to various reasons.

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