Question: Suppose you are President and CEO of a sports franchise. The stadium has 40,000 seats. The demand for tickets far exceeds the number of seats available. An expansion program is in the offing.

a) What are some of the decisions you must make in the short-run?

b) What are the fixed factors of production? What are the variable factors of production?

c) What are the long-run decisions you must make? Explain.