In the first years of a professional athlete's career,the athlete is "under reserve," which means that he or she cannot negotiate with other teams.This creates a de facto
A) monopolist.
B) monopsony.
C) duopoly.
D) bilateral monopoly.

Question

Quizplus · Accepted Answer

The athlete being unable to negotiate with other teams creates a monopsony, which is a market condition in which there is only one buyer for a particular good or service. In this case, the athlete's labor is the "good," and the team is the "buyer." Thus, the team has significant bargaining power in setting the athlete's salary and benefits. This restricts the athlete's ability to shop around for the best offer and creates a disadvantage for the athlete in negotiations.

In the First Years of a Professional Athlete's Career,the Athlete