You own Athleticon, which manufactures athletic wear.  Your new contract  with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo.  No one lese can manufacture athletic wear with the “Atlanta United” logo.  What do you think will be Athleticon’s  level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years.  It was not renewed.  Other firms can now manufacture athletic wear with the “Atlanta United” logo 2. What would you expect to happen to the price of “Atlanta United” athletic wear?  Explain why.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 25P
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You own Athleticon, which manufactures athletic wear.  Your new contract  with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo.  No one lese can manufacture athletic wear with the “Atlanta United” logo. 

  1. What do you think will be Athleticon’s  level of profitability on the sale of “Atlanta United” athletic wear? Explain why.

Your contract with Atlanta United only lasts 3 years.  It was not renewed.  Other firms can now manufacture athletic wear with the “Atlanta United” logo

2. What would you expect to happen to the price of “Atlanta United” athletic wear?  Explain why.

 

 

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