'Hunger+Games'+stocks+gain+after+record+weekend+by+Medha+Menon

//**REMEMBER: DO NOT SUMMARIZE THE ARTICLE!!!**//

=TITLE OF EXTRACT:= 'Hunger Games' stocks gain after record weekend =SOURCE:= http://money.cnn.com/2012/03/26/markets/hunger-games-stocks/index.htm?hpt=ibu_c1

=DATE EXTRACT WAS WRITTEN:= March 26th 2012

=DATE CURRENT EVENT WAS WRITTEN:= March 27th 2012

=EXPLANATION OF THE ECONOMIC THEORY RELATED TO THE ARTICLE:= "Lionsgate studio released the film in the United States and several overseas markets, jumped 3.9% in early Monday trading on news that the movie took in $155 million in U.S. ticket sales over the weekend." The film industry is in monopolistic competition. The Hunger Games film made an abnormal profit for the Lionsgate studio firm, when it earned $155 million in US ticket sales alone. "Earlier this month, the company said the buzz in advance of the movie opening has helped lift sales of the books."  The demand curve for The Hunger Games novels shifted upwards, because it became the new fad with the promotions for its film. This increased book sales.  Over all the success of the film was a big economic benefit towards The Hunger Game franchise. =VOCABULARY TERMS AND DEFINITIONS:= supply - the willingness and ability of a producer to produce a quantity of a good or service at different prices (in a given time period). quantity the willingness and ability of a producer to produce a quantity of a good or service at a certain price (in a given time period).

demand - the willingness and ability of a consumer to purchase a quantity of a good or service at different prices (in a given time period). determinants (nonprice factors)
 * Taste - what people like

short run - the period of time in which at least one factor of production is fixed. All production takes place in the short run.

abnormal profit - Total revenue > total cost (fixed, variable, and opportunity). The owner is making more that his/her expected profit and so is very happy.

monopolistic competition assumptions 1. industry is made up of a fairly large number of firms 2. each firm is small, relative to the size of the industry. the actions of one firm are unlikely to have a great effect on any of its competitors. 3. The firms all produce slightly differentiated goods. 4. Firms are completely free to enter and exit the industry. short run abnormal profits in the s.r. they may make excess profits. long run normal profits l.r. firms only make normal profits efficiency in lr and sr aren't either allocatively efficient (MC does not = AR) or productively efficient (MC does not = AC)

=DIAGRAMS:=

=EVALUATION:= Currently the Hunger Games franchise is doing extremely well for itself. However the producers must keep in mind that The Hunger Games will probably lose revenue from here because normally after the opening day films decrease in demand. As more people watch it, that means that there are less people left to watch it. In order to keep up the fad, the Hunger Games needs to promote different merchandise to stall the audience before the hype for the second film in the trilogy. Whatever they do, they need to make the audience believe that choosing to watch The Hunger Games, beats its opportunity cost of any other movie showing in the theater.