Wednesday, February 12, 2014

Zoos and the Economy

Written By: Eric Biedlingmaier



Generally, when people think of economy, they think of money. More often than not, this money is thought to have been generated from sales, or from services that specialists provide, or from entertainment such as movies or television. Often overlooked, however, is how zoos and aquariums can offer entertainment, and how unlike movies and television, help the region they are located in substantially through enormous investments and even greater profits.

Zoos and aquariums, as one can imagine, require animals. This may come as a nobrainer, but these animals-- far from pet store variety-- can exceed a million dollar per animal per year, due to them being “rented”. In addition, the cost of feeding the animals is tacked on, and these critters can consume more than 25,000 dollars worth of food a year. And that number is only for an individual monkey! Larger animals, such as big cats, bears, or elephants, require a much larger amount, and add to the cost.

For example, according to gallup.com, the average cost of feeding a human for a month is about 151 dollars. That amounts to 1812 dollars a year. As you can see, the difference between the amount monkeys need for survival versus the amount humans need to survive is astounding, plus the fact that a zoo has several hundred animals, if not thousand. This also doesn’t account for renovations and human capital, and each zoo has several thousand employees to pay. Tack on medical bills for animals, the need to recreate habitats within the zoo, and construction of buildings, and the grand total for everything, per year, is a whopping 23.5 million dollars, according to the Minnesota Zoo.

However, thankfully for many zoos, the opportunity benefit is greater than the opportunity cost. These zoos can barely run on their budget, and they don’t normally make a profit. The benefits to having a local zoo is education; many people, upwards of a million, can visit the zoo or aquarium during a year, depending on location. These zoo-goers learn more about the animals, and this is the primary reason zoos are kept around. Sometimes, zoos work for a profit, but the capital earned generally goes back into the zoo in the form of renovations, whereas the non-profit zoos can get funding from other businesses, such as the Milwaukee Public Zoo is sponsored by BMO Harris Bank. The donations received from their sponsors and from families willing to donate helps to fund their on-going renovations and new additions to the zoo. However, with this budget, many times unplanned things fall into place. Sometimes, building have major problems with them, sometimes animals that were large attractions pass away. Because of this, the budget planned for zoos continues to increase, and with it, ticket prices do too. More employees are needed as well, and that adds even more to ticket prices. Often, zoos increase ticket prices by one to three dollars per year. But even more often than that, zoos find themselves several hundred thousand dollars in debt.

• Dakota Zoo." Dakota Zoo. N.p., n.d. Web. 11 Feb. 2014.
<http://www.dakotazoo.org/at-the-zoo/animal_food/ >.

• "MarketWatch - Stock Market Quotes, Business News, Financial
News."MarketWatch - Stock Market Quotes, Business News, Financial News. N.p., n.d.
Web. 10 Feb. 2014. <http://www.marketwatch.com>.

• "Zoo Camp Registration Starts February 15." Minnesota Zoo. N.p., n.d. Web. 11
Feb. 2014. <http://www.mnzoo.org/global/aboutUs_di

Pictures:
http://upload.wikimedia.org/wikipedia/commons/1/18/Washington_Zoo_entrance.jpg
http://brookfield-zoo.visit-chicago-illinois.com/Zebra-brookfield-chicago-zoo.jpg

62 comments:

  1. It's been a few years since I went to the zoo, but this is incredible! I didn't realize how the expenses add up so fast and I'm glad that zoos can get sponsored so they can be used educationally for students and recreationally by families. I always remember that the ticket prices were quite high as a kid, but it makes sense as to why they are that way, and I think it's totally worth the price if you think about all those incredible expenses! It's a difficult situation, because if the people who run the zoos drive the prices to high, they can drive away the crowds, but if they price them too low, they lose the necessary income--and that's bad enough if they're already in debt!

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  2. Very interesting piece and I am really wondering what made you come up with this topic. There are a couple numbers I am kind of questioning though. For example there are probably less than a thousand people working at a zoo but I could be wrong also people probably eat for more than 151 dollars a month (That is saying one dollar a Meal) but again I could be wrong. Also it is really amazing how the expense of a zoo add up. Great writing piece though.

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  3. This is very interesting. I had never thought of how much the animals would cost the zoo for simply just being there. I can reasonably see the food costing about 25,000 dollars a year, because that food is more of a specialty item. I never knew on the other hand that many animals are rented. Even though the cost is somewhat high, I still do believe that these zoos need as much funding as they can get; allowing the education of all citizens is an important thing.

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  4. I never thought of the zoo in this respect. Keeping the animals there and there care is very expensive (which I read through your post). I knew they were expensive, but it was interesting to read that zoos are constantly in debt. The only thing that keeps them afloat is the education. I wonder what the price of a ticket for the zoo is going to be like in 10 years? Probably really expensive!

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  5. Is this why zoo prices are so expensive? I did not realize that the zoo's are always in debt but I did wonder how their economy worked taking care of all those animals and paying their workers. Animals cost more than we think and since the downfall in economy of goods and services, zoo's are definitely feeling the impact. It was really interesting when you brought together all the expenses of the zoo's because I really did not know they had that much debt to worry about. I wonder in the future with the downfall if zoo's will even be able to exist on such a tight budget. Soon zoo's will become a rich person event to attend.

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    1. Joe, many zoos have seen an increase in sales since the economic downturn since it is generally cheaper than amusement parks or many other popular family activities.

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  6. This really explains a lot. My family has stopped visiting the zoo over the years, because of the insane prices. Parking fees have skyrocketed, admission tickets are through the roof, and don't even get me started on the food. We've had to pack lunches and eat in the car, because we just couldn't afford to spend ten dollars on a burger.
    But I never understood why these prices were so high until now. I knew these exotic animals were expensive to take care of, but I had no idea of all the expenses that went into taking care of the animals. Not to mention the expenses of the ground upkeep and paying the employees. It seems that it's essential for zoos to be sponsored, because if they just raised the prices on everything, they would never be able to cope with the loss of visitors then. Hopefully there's some organizations that donate as well to keep all the animals well taken care of!

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  7. I thought this was a really good way to look at this situation. As an average civilian in the Milwaukee area, we dont really see how much money actually goes into the zoo, and we probably don't think about it. But when you look into it more, as you did, it's quiet clear that more money and time goes into the zoo every year. Based on your information, I feel as though this amount of money will only continue to increase as time goes on. To me, I think it's kind of sad. The zoo should be a place where families can go, and enjoy without spending a lot of money, but I feel like it's really pushing away from that. I think it's crazy how much the prices have increased from the economic issues.

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  8. This was an extremely interesting article! I always think about the zoo, and how much longer they will be around due to the increase in technology use. This really puts things into perspective. I don’t think many people realize how much money goes into keeping a zoo running! The amount of money that animals cost is ridiculous! I think the benefit of enjoying the zoo is totally worth the cost of a higher priced ticket. Plus you can always get a zoo pass! Great writing; really interesting!

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  9. I can see one day zoos taking more than they are worth. in the sense of one day the cost is going to out way the educational benefits of the zoo. they are just going to become to expensive and hectic to be worth their benefits.

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  10. Do you think the rise in technology will be harmful for the already strained income of zoos, or will the zoos remain unaffected? With everything on the computer nowadays going to the zoo for information isn’t as necessary, instead it could be viewed as a hassle for schools organizing trips. So, if zoos are already losing hundreds of thousands each year, will that increase until zoos are shut down or do you think the appeal of seeing the animals will be enough to sustain the non-profit and profit zoos? With an annual cost of around 23.5 million dollars, there has to be a substantial amount of visitors every year to keep the zoos open.

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  11. I had no idea animals took that much to feed. In my opinion that is astronomical and completely unnecessary pricing for monkey food. How is it that it costs more to feed a 70 pound monkey than a 160 pound human by a factor of nearly 12? Unless there is some extremely special requirement for monkeys that is nearly prohibitively expensive to produce, I don't see how feeding them could be so expensive. Thus, the root of zoo debt problems appears to be price-gouging on food. If we could stop that, we could save more zoos and reduce ticket prices, or potentially even raise employee wages. Also, as a personal note, very well written article. It read like something you'd expect on a news site. Great job, Eric.

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  13. From the looks of this article there is not much of a margin for profit when operating a zoo. With all of these costs being unpredictable there is no telling how much the zoo will actually cost as animals pass away or get sick. It is very fortunate that zoos receive outside assistance from sponsoring businesses so that the zoos can stay in business and continue to be a place where students and others can learn about wildlife. With zoos making such a small amount of money compared to the cost, I wonder if the zoos sometimes may receive government subsidies to keep afloat. Without a source of outside income, zoos will have to continue to raise ticket prices which is something they can‘t easily do since many people who visit zoos are families or people with low incomes.

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  14. I was surprised to see the drastic amounts of money that goes into the zoo and taking care of the animals. If you think about all the zoos around the world, that adds up to a lot of money. The zoo is without a doubt one of the best places to go, I still enjoy going myself! With the prices going up though and the zoos becoming more in debt who knows how much longer zoos will be around. I don't remember the zoo ever being almost $15 to get into for the day, but it is understandable with today's economy. Sooner or later zoos will be come to expensive and it will come the time to send the animals off and set them free!

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  15. This makes me wonder how there are so many zoos still open. I feel like raising the coast about three dollars a year will soon cause families to lose interest in “going to the zoo” because it’s a consumers would and if the price is to high then the zoos will flop. This also makes me wonder how the free Zoos, like the one in Madison, are able to run when they are only funded by donations. In addition I was shocked at the average cost of feeding just a single monkey, and even more so of cats coasting even more. It seems to me that the zoos are a dyeing form of entertainment.

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  16. The zoo isn't really the first thing that comes to mind when I think of Milwaukee anymore. And when you go to the zoo, the first thing that comes to mind is never how much it costs to feed the giraffes. Nor is the zoo a topic often discussed by politicians. Regardless it seems pretty clear that the zoo would take in a good deal more money than it generates if tickets and parking passes were not priced so high. It makes me question what they're for because the education value of having a zoo must not be too great. It's worth asking whether these things are necessary.

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  17. If every zoo is for education then why does the government not support? Libraries are for education and the government supports that. The reason behind that is there is no way a library can make a profit. According to what you wrote, it's unlikely for a zoo to either.

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  18. It has been so long since the last time my family and I went to a zoo, but I can say I had a blast. I believe the reason why we stopped going was explained clearly in this post. It’s all because of the ticket prices. I knew that it took a lot of money to run and operate a zoo, but the amount of food that the animals eat, when translated into dollars is huge! Like other people who have commented, it is great that non-profit zoos can get sponsors from different companies. Even though it seems that many people donate to the zoo and it has been easy to pay for operations, your right that there can be many other factors that interfere. Repairs and passing of animals can really affect the revenue that zoos make. Ultimately, I believe people should keep funding for zoos and be more aware of the costs and efforts that people have gone through to educate people. It’s all for a good cause.

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  19. The numbers you provided in regards to the necessities of just one animal per year took my vision and appreciation toward the construction, renovation, and energy in the zoo to new heights. It truly is incredible the money people are willing to pay for this elaborate form of entertainment despite the drainage of finances that follows. How much funding do zoo's receive typically in the form of sponsors/donations? I would only assume that the numbers would not be met to provide funding without marketing the event within a team. It seems as though--thankfully--the debts of zoos has not yet become a surface issue necessarily in regards to providing the animals with food, keeping the habitats maintained, the maintenance in check, the capital attended to, and so on.

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  20. Never once when I've gone to the zoo have I thought about how much it really costs them to maintain it! Although this does not exactly relate to a production possibility curve, an increase in population could immensely help the profit of the zoo because it would give them much more business and therefore more money would come in. This is a really interesting topic, and it really opened up my eyes to the kinds of opportunity costs and benefits come with running such a unique business.

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  21. Its been a long time since I have walk around in the zoo, but one thing I know is that I would never expect the animals to be that expensive and then to maintain them. That's a crazy amount of money that the zoo has to pay to keep up and keep the business running strong while making profit still. I also never knew that animals are rented. Overall, that was a very interesting topic and I learned some new facts.

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  22. Great article! The article was very eye opening. Now that I think about it, it makes sense why the prices at the zoo are so high. I believe the government should sponsor zoos to prevent the prices from skyrocketing and to keep the public interested. Zoos are very beneficial to a community and should as high as a priority as a library.

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  23. I think it’s amazing that zoos can bring in this much profit to a city and to the economy. You never really think about animals bringing in all this profit and benefit to a community. This article was very interesting and eye-opening; I think the craziest stat that you provided was the fact that a little monkey requires so much money to feed it per year. I thought I ate a lot of food!

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  24. Are zoo's really worth the cost to run them? I had no idea the price of housing and feeding the animals was so high. Do the zoo's bring any money to the area that it is in? From visitors from out of state? I didn't know that a lot of zoos were none profit?

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  25. This is really interesting because I never realized all of this. I wonder why they only rent the animals instead of just buying them? It is weird to think about a city without a zoo and for the kids to grow up without this zoo or being able to see all of these animals. I can't believe how much these animals cost per year per animal! Millions of dollars just for a zebra. That's insane!

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  26. I agree with you that zoo's are very important. It is an attraction for tourists and tourists bring in a lot of money. It just does not seem worth running a zoo because they cost so much money. I cant believe that one zoo costed 23.5 million dollars a year, that's unreal. I never realized how much goes into taking care of a zoo.

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  28. Very good article, Eric! I never realized how important zoos are. I also didn't realize how much money it takes to maintain the zoo. I didn't know that there was so much you have to do to take care of the zoo, and the 23.5 million dollars a year for the zoo is astonishing. Again, really good article, and very good job, Eric!

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  29. Zoos are definitely important for everyone. Zoos provide public education and help people better understand other animals but also provide entertainment. Going to a zoo is much better than sitting on your butt and staring at a box for an hour or two. Though this is a very good public benefit, the cost is scary as is. Over the years, is the cost going to dramatically increase or decrease?

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  30. I also have not been to the zoo in many years. I actually took it for granted because I never really thought about how much money has to go into it in order to maintain the animals and their habitats. This was very well written and I think opened many peoples eyes seeing the sacrifice that are made in order to bring people together and learn by going to zoos all across the United States of America.

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  31. My opinion on zoos changes often. I think they provide an incredible opportunity for learning but I also see it as a prison for animals. Therefore, I can't properly analyze the opportunity cost of the zoo. I haven't taken the time to really research the zoo and I was completely unaware of the incredible cost that goes along with operating a zoo.

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  32. I have always wondered why the dent in my wallet from going to the zoo was so large, it all makes sense. I feel if they raised the price even one dollar, people will still go because there isn't a competitor in the vicinity of the zoo, so they shouldn't have to worry about people going to another zoo.

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    1. It could also be easy to add on a dollar or two to the price because zoos are not too close to each other. If the price of one zoo is a little more expensive, it might cost the same to go to a cheaper one once you add in the price of gas. I almost see the Milwaukee Zoo as a monopoly, because there is no other zoo that close to have any big competition with. I personally never understood why ticket prices were so high at the zoo, but after reading this I can understand.

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  33. I guess that I never really realized how much a zoo would cost to run. If you take a step back and think about it, it would make sense, because animals are not cheap, and no employee likes to work for a low wage. However it is very interesting that a zoo can manage to stay open year after year, even when they are hundreds of thousands in debt. It makes you wonder how much of your money is actually going towards keeping the zoo up to date and things like that.

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  34. Yeah I agree that the zoo tickets are sometimes very expensive. My family recently bought a zoo pass for the Milwaukee Public Zoo. I will definitely think about this in the summer when I’m at the zoo. I will think of all the costs, payments, and even the debt the zoo needs to pay. It really is interesting how entertainment costs so much.

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  35. It is quite astonishing that one animal can cost up to 1 million dollars a year just to rent and that isn't even its final cost for the year due to any medical treatments it may need and especially the food. After reading this I now know why the prices of the zoo and parking are so outrageous and why they do so much advertising to try and get people to come to the zoo. I am curious about how much profit, if any the zoo makes per year and what they do with that money.... More animals, upgrading the habitats or what?

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  36. I believe that the amount for caring for an animal when they are not in their natural habit would be an unbelievable amount of money, but humans have the same bills as the animals. We have to pay for medical bills, food, clothes, shelter, etc. just like the animal caretakers have to too. I personally love going to the zoo to visit the animals, but they way it is pictured in my mind is that all these animals are away from home and stuck in cages looking at a bunch of strangers all day. Even though zoos are great attractions for the summer time, I believe that with the entire debt zoo businesses are going into, they will raise the prices more and more to the point where no one will be able to afford it anymore.

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  37. I have to agree with the fact that zoos and aquariums are not my first thought when I picture the economy, but I also have to agree with Jennie that it would not be my priority to fund zoos when the animals should not be there in the first place. I understand that it is nice for educational reasons and it's very cool to see the animals, but it's mean to keep them in small habitats. It is already very expensive to go to the zoo, and it obviously costs a lot to keep such a business running. I just don't think it's worth increasing the price when the animals should be living in their natural habitats anyways.

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  38. I like that you chose this topic. It is interesting to switch my perspective of a delightful visit to the zoo to an economic standpoint. Animals are simply an investment. While they cost a lot to provide for and there are risks with death or sicknesses, they bring in zoo goers. I like how you incorporated opportunity cost and that despite their risk and cost, there is profit. I've never really thought about the price of going to the zoo. It's the unique experience of the zoo that brings it so much money.

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  39. I thought it was amazing how much it can cost to have animals in a zoo I have never thought of zoos from this perspective and I am glad you made this point clear to all of us that thinks like zoos and aquariums are part of how we are entertained.

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    1. Glad you found the entry interesting. In addition to sharing your opinion, try to build on the discussion in your comment.

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  40. This was such an interesting read, I never would have thought about this before but I think this is a very worth y topic to discuss. Our economy should not come before the well being of animals. If we pay for the quality medical care, food, etc for ourselves, shouldn't animals be entitled to the same amenities? Yes it may cost more or be a bit of a hassle but the animals didn't ask to be put in cages for display and human entertainment. If we use them to better our economy we at least owe them the quality care they deserve.

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    1. Emily, what part of the entry are you referring to when you say the economy should not come before the well being of animals? Eric mentions how expensive zoos are but I don't recall anywhere in the article implying that economic gain is more important than the health of animals.

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  41. It is often assumed that zoos were easy to maintain and cheap in terms of upkeep. However, this article shows the true cost that zoos have to deal with. However, you should consider the benefits derived from the economic investment of another animal. In addition to this, it should be further stressed that most zoos are either subsidized by the local government and/or local business as you mentioned with the Milwaukee public zoo. Good article.

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  42. It's interesting that zoos, making hardly any profit, will still stay in business. According to econ, a firm will stay in business only if they are covering all of their variable costs (including a normal profit). I wonder if your statistics meant that they barely earn a profit, or barely earn a normal profit, as if they aren't earning a normal profit they would theoretically shut down. I never realized the enormous amount of cost going into a zoo, but I think it's worth it. I love the zoo, and think that even though they can't always make a profit, they should always be sponsored by corporations, private investment, or even the government if necessary.

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  43. I really love this topic, not just because I love animals, but also because it is from an interesting point of view. I had no clue that it cost so much to keep a zoo up and running much less how much it cost just to feed one animal for a year! I now understand why it cost a lot just to visit, especially if they barely break even with their budget for the year. I was wondering how much they spend on the animals medical care? I would hope the care they are receiving is the same amount of care that we receive from our health care.

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  44. I love that you chose such an unusual topic! I never would have associated the zoo with our economy. I never took into consideration the costs and care that zoo animals require and all of the aspects that feed into maintaining it. It is interesting that zoos receive subsidizes by the government. It makes sense for them to receive funds since it is public institution and how expensive they are to build and maintain. Great topic!

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  45. This was a very different, off-beat topic to choose, which was the reason it turned out to be so interesting! I never actually thought of the zoo in this light, in terms of money. Before this, I didn't know where the zoo received its funding. I wasn't aware that there are so many sources, from big sponsors like BMO Harris, to private funding from families. Hopefully in the future, the zoo will continue to receive these successful funds in order to keep the animals in good health and the zoo open for entertainment.

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  46. Interesting perspective on zoos. Your entry shows the importance of donations to many zoos. Careful with your economic terms, we compare marginal cost and marginal benefit, not opportunity cost and opportunity benefit.

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  47. Who would have thought how much money would be put into running a zoo? What's even more impressive is for many of the zoos, and the zoo mentioned in the article (Minneapolis) make their profit about half of a year, give or take a month or two. I couldn't imagine how much of that cost for the animals is just for the time when no one is around during the cold months.

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  48. Wow! I never realized the amount of money needed to support a zoo. With the millions of people a year that go to the zoo, I would have thought that they would be making a large profit, but apparently, that is not the case. I am now much more appreciative of zoos and the people who own them, it is incredible that they would pursue a career with little monetary gain just for the sake of education.

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  49. Wow, I had no idea it cost a zoo that much to stay afloat! I was fully aware that exotic wildlife upkeep couldn't possibly be cheap, but this costly budget is truly something else. I liked the connection you made to our Econ unit: opportunity cost and benefit. It really conveys how important it is that we appreciate the sacrifices our society makes to provide us with entertainment.

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  50. It's pretty ridiculous how much it costs to run a zoo; I never would have guessed that it costs tens of thousands of dollars to feed one animal for only a year. There was a story recently in the news about a giraffe in Denmark that they had to shoot because they couldn't afford to keep him anymore. It caused a big scandal, because they killed him in front of everybody and then performed an autopsy and published the pictures in the newspaper. Hopefully something like that doesn't happen here.

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  51. I'm really glad I read your post because I had absolutely no idea that it cost that much to run a zoo. With knowledge of how much it can cost just to have two dogs in your house I'm aware that animals can be expensive but I had no idea that range could extend to millions of dollars! However I think people underestimate the cost of animals when it comes to buying a pet, let alone starting a zoo. With the endless vet visits and never ending supply of dog food, the prices add up quickly. When I read this I did keep asking myself why the zoos stay open if they are in so much debt even after being paid by sponsors. Yes, you can get educated while at the zoo but from what I have experienced I never read the little excerpts outside of the animals cages, instead I just enjoyed looking at them. Whether it is for education or pure entertainment, it amazes me that they stay open!

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  52. This was a really interesting topic to explore. I never even gave a though to the economics behind running and operating a zoo. I think that the tie between opportunity costs that you provided was really well done and accurate. Obviously, zoos would no longer exist if they did not benefit society and have this benefit exceed the cost. Still a question though, whether or not there is a less expensive way to teach others about animals, but really well done article.

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  53. I liked this topic a lot because people don't usually think about how much it costs for a zoo to be in business. Clearly such exotic animals that are kept in zoos aren't cheap and many of the larger animals, such as the lions, tigers, elephants, ect. will obviously cost a lot of money to feed and maintain. I'm happy that we still have the luxury to go to zoos because they can be very educational and a classic place for children to enjoy themselves and have a good time. Even I sometimes want to go the zoo to see the animals, so although they may be in debt and the maintenance costs may be expensive, I'm glad people still have the opportunity to go to zoos and aquariums.

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  54. This topic was very well thought out and really made me think. I never thought about how much it really took to run a zoo. I used to think it was pretty expensive just to go to a zoo, but now that I think about how much it is to actually run the zoo, feed the animals, make renovations, etc. it really puts it into perspective on how much work goes into running a zoo. I am not more grateful and appreciate it more, because people are trying extremely hard and making sure all zoos are up to date just so we can come see animals for our enjoyment. I am very happy that we are able to still go to zoos when we please because of the generous donations and funds that people give to help keep the zoos open. Very cool.

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  55. This makes me wonder how there are so many zoos still open. I feel like raising the coast about three dollars a year will soon cause families to lose interest in “going to the zoo” because it’s a consumers would and if the price is to high then the zoos will flop. This also makes me wonder how the free Zoos, like the one in Madison, are able to run when they are only funded by donations. In addition I was shocked at the average cost of feeding just a single monkey, and even more so the coast of raising cats. It seems to me that the zoos are a dyeing form of entertainment.

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  56. Ever since I was little, I have always loved going to the zoo and looking at all the different kinds of animals. Even now, I still love spending the day at the zoo. I often wondered how much it would take to keep a zoo running. I expected the amount to be a million or so. But I never imagined it might be higher. It's amazing that the zoo must rent these animals which would cost thousands of dollars along with spending 25,000 dollars worth of food a year on these animals. I would definitely be difficult to get all this money back. Even though people may generously donate their money, and with hundreds of visitors a day visiting the zoo, the zoo would not be able to make that amount of money back. It could take years before they make that money back.

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  57. I love going to the zoo! Since the past two Christmas's I've gotten a Milwaukee county zoo pass but, I have never really put much thought to how expensive the animals are and their up keeping. But I have realized that the past couple times I've been to the zoo that the gift shop and food prices are pretty pricey and they also make money from the pony and carousal rides probably not much but, maybe a little bit to help. Overall it was a very interesting article and I learned a lot from it and will keep it in mind my next zoo visit.

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