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Essay text:
Therefore, in order to be able to clearly draw a marginal
revenue curve and a marginal cost curve for the casino industry so as to clearly know where
the equilibrium is, we have to make a clear definition: all marketing measures a casino adopts
are increasing its cost except for those directly lowering down its house advantage. Just by
this definition, the marginal revenue curve of the VIP sector in this model exhibits a flat line
in parallel with the X axis, which implies, within the VIP-room contractual system, that the
casino never uses house advantage as a marketing tool. Instead, all the marketing measures it
takes are not actually marketing the customers, but marketing the customer recruiters, so it is
only related to cost...
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