Suppose that in 2008, you became president of a small nonprofit theater company. Your playhouse has 120 seats and a small stage. The actors have national reputations, and demand for tickets is enormous relative to the number of seats available; every performance is sold out months in advance. You are elected because you have demonstrated an ability to raise funds successfully. Describe some of the decisions that you must make in the short run. What might you consider to be your “fixed factor”? What alternative decisions might you be able to make in the long run? Explain.

You'd want to raise ticket prices --- at least to the point where all performances aren't sold out, and likely higher --- in order to maximize revenue. Virtually, all of your costs are fixed unless you have a rev share contract with the talent.

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As the president of a small nonprofit theater company, you would have to make several decisions in the short run to effectively manage the organization. Some of these decisions may include:

1. Ticket Pricing: You might have to consider adjusting the ticket prices to reflect the high demand and limited seating capacity. This could help maximize revenue and ensure that the theater remains financially sustainable.

2. Performance Schedule: You may need to determine the frequency of performances and the duration of the play. This could involve deciding whether to add more shows per week or extend the run of the production to accommodate the high demand.

3. Promotions and Marketing: You would need to strategize effective marketing and promotional activities to ensure that the demand for tickets remains constant. This could involve leveraging social media, partnering with local businesses, or engaging in targeted advertising campaigns.

4. Fundraising: Given your successful fundraising track record, you would need to continue raising funds to support the theater's operations and future productions. This may involve organizing special events, approaching potential sponsors, or generating revenue through partnerships or donations.

Regarding the fixed factor, in this scenario, it would be the theater's seating capacity, which remains constant in the short run. The fixed factor refers to an input that cannot be easily changed or expanded within a specific time frame. As the number of seats is limited to 120, you cannot immediately increase the seating capacity.

However, in the long run, you might have some alternative decisions available to you. Here are a few possibilities:

1. Theater Expansion: If the demand for tickets continues to be enormous and consistently exceeds the seating capacity, you may consider expanding the theater by increasing the number of seats or even building a larger facility.

2. Additional Productions: You could explore the possibility of adding more productions to the theater's repertoire. This would provide more opportunities for the actors and potentially increase ticket availability.

3. Collaborations: You may consider collaborating with other theater companies or venues to stage joint productions. This could help meet the demand while sharing resources and costs.

4. Technology Integration: Incorporating streaming or digital platforms could reach a wider audience, increasing accessibility while still maintaining the live theater experience.

In the long run, these alternative decisions would require strategic planning, budgeting, community engagement, and potentially partnerships with stakeholders to ensure the continued success and growth of the nonprofit theater company.