The owners of sports franchises often complain that free-agency (open bidding for player services) threatens their profitability and thus their long-run viability.Given your knowledge of perfect competition,which of the following is correct?
A) Team owners might be correct in as much as free-agency bids up the price of players so that economic profits from those players equal zero.
B) Team owners might be correct in as much as free-agency bids up the price of players so that economic profits from those players is negative.
C) Team owners are lying, as free-agent salaries are still much too low.
D) Team owners are telling the truth, as free-agent salaries are much too high.
Correct Answer:
Verified
Q1: Firms are _ with an economic profit
Q2: Sheri is currently purchasing 10 units of
Q3: Survivability in a perfectly competitive world requires
Q4: In the long run,firms in a competitive
Q5: Mister Jones was selling his house.The asking
Q7: You enter a store and buy a
Q8: What is one reason firms might lobby
Q9: Suppose when a market has four firms,average
Q10: A firm that generates zero economic profit
Q11: Which of the following characterizes long-run equilibrium
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents