The Los Angeles Dodgers and the Los Angeles Angels of Anaheim Essay Example for Free

The Los Angeles Dodgers and the Los Angeles Angels of Anaheim Essay Despite the competition derived from proximity, the Los Angeles Dodgers and the Anaheim Angel both maintain financial success. Rather than one team dominating the market in ticket sales, both have a profitable organization. Every year, both teams manage to generate a substantial revenue – despite sharing a city. The population forms an allegiance with one team or the other for a multitude of reasons. The Los Angeles Dodgers had an average attendance of 51,396 fans per game in 2009 (sportsnetwork. com, 2010). The Los Angeles Angels of Anaheim’s average attendance was 40,005 in 2009 (sportsnetwork. com, 2010). While there is a substantial difference between the average ticket sales of both teams, other factors can account for this such as stadium size and winning streaks. For example, the Angels only have a seating capacity of 45,050 while Dodger stadium has a seating capacity of 56,000. For example, a winning streak that could lead to future playoff games and a potential spot in the World Series, the ticket sales will naturally increase for that particular team. This is true of teams that are distanced far apart as well. Proximity is merely one of several factors that contribute to the financial success of a baseball team. The Los Angeles Dodgers have a team value of $632 million and their yearly revenue is about $211 million (forbes. com, 2007). The Los Angeles Angels of Anaheim have a team value of $431 million and a yearly revenue of $187 million (forbes. com, 2007). Second, which is the major part, discuss the Marginal Cost and the Marginal Benefit of both teams. also, discuss some issues that could affect their marginal cost and their marginal benefit. There are many times in which marginal cost and marginal benefit can affect the team. If one piece of merchandise outsells another piece of merchandise, the manufacturer will produce less of the unpopular product and produce more of the item that has high sales. In the case of the Los Angeles Dodgers and the Los Angeles Angels of Anaheim, if one team is losing more games than the other, there could be an increased number of consumers buying tickets to the winning team’s games. The substitution of goods effect would take place in fans without an allegiance to either the Los Angeles Dodgers or the Los Angeles Angels of Anaheim. For example, if the ticket prices are lower for one team than the other, and a family merely wants a fun afternoon watching a baseball game, the consumer would choose the lower price tickets. This is assuming the consumer has no preference for the specific teams. As the consumers in the stands buy beers and purchase hotdogs, they are eventually affected by the law of diminishing utility. In other words, as the consumer ingests more hotdogs, he will become satiated and each subsequent hot dog will be less enjoyable. As a result, the consumer will be less inclined to buy more. There are many factors that can affect the supply and demand of the market for ticket sales. Increasing the number of seats affects the aggregate supply the manager can offer fans. On a supply and demand curve, the supply would shift to the right in this scenario. An occasion to increase the number of seats would be a sold-out stadium each game. This would likely cause the owners of the stadium to try to increase the supply of seats to meet the demand of the ticket holders. Another factor that could increase the supply is a increase in the amount of merchandise offered. Usually the increase in supply is prompted by an increased demand, unless the merchandise could suddenly be produced at a cheaper cost to the manufacturer.