According to the In the News article titled "Free Agents in Sports: A Threat to Monopsony," all of the following statements about reserve clauses and free agency in sports are true except
A) The reserve clause stated that individual players were permitted to negotiate with only one team, and they couldn't move to another team without their owner's permission.
B) In 1976 baseball players won the right to become free agents-to negotiate and play for any team-after six years of major league experience.
C) Players'right to become free agents has weakened the monopsonistic power of teams and has led to
Dramatically higher player salaries.
D) Reserve clauses increased competing wage offers and conferred monopsony power on players. Because reserve clauses limited competing wage offers, they conferred monopsony power on team owners. This kept athletes'wages below competitive equilibrium. Free agency changed that.

Question

Quizplus · Accepted Answer

Reserve clauses did not increase competing wage offers and did not confer monopsony power on players. Instead, they limited competing wage offers and conferred monopsony power on team owners, which kept athletes' wages below competitive equilibrium. Free agency changed that by allowing players to negotiate with multiple teams and receive higher salaries.

According to the in the News Article Titled "Free Agents