Final answer:
The registration fee for all players represents revenue for hockey organizations. It contributes to covering fixed and variable costs and is an essential factor in determining their financial sustainability.
Step-by-step explanation:
The registration fee (price) for all the players typically represents revenue for hockey organizations. This fee is a source of income organizations earn by providing the service of organizing and facilitating hockey leagues and activities. It is important to understand the concept of price elasticity of demand when considering how to maximize this revenue. Total revenue is calculated by multiplying the price at which the service is offered by the quantity of registrations sold. If the demand is elastic, the organization may decide to lower the registration fee to increase the quantity sold, thus raising total revenue. Conversely, if the demand is inelastic, they may increase the fee with relatively little impact on the quantity sold, which also increases total revenue. For a case of unitary elasticity, adjustments in price would not significantly alter revenue.
Different businesses have varied patterns of costs like fixed costs and variable costs. Some have high fixed costs and low variable costs, while others may have the opposite. Hockey organizations likely face significant fixed costs—such as ice rink rental, equipment, and staff salaries—that do not change regardless of the number of players registered. Variable costs would include expenses that change with the number of participants, such as uniforms and trophies. Understanding these costs is essential for setting appropriate registration fees to ensure the financial sustainability of the organization.