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The stadium in Tokyo faces a downward sloping demand curve for tickets to rugby games and the stadium has a fixed number of seats available.
The stadium in Tokyo faces a downward sloping demand curve for tickets to rugby games and the stadium has a fixed number of seats available. Assume the marginal cost of filling a seat is zero. Why might the stadium decide not to sell out every rugby game even though the marginal cost of selling additional seats is virtually zero? Discuss and illustrate graphically.
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