Consider the same marginal revenue functions. Now suppose the league imposes a 20% luxury tax on the payroll of the large market team. MRL = 125 - 125 WL MRS = 65 - 65 WS Find the following: a) Equilibrium win percents for the both the large market and small market teams. b) Price of talent. c) Payrolls for the large market and small market teams. Consider the same marginal revenue functions. Suppose now that teams must share 40% of their revenues (gate receipts) with the opposing team. MRL = 125 - 125 WL MRS = 65 - 65 WS Find the following: a) Equilibrium win percents for the both the large market and small market teams. b) Price of talent. c) Payrolls for the large market and small market teams.

Consider the same marginal revenue functions. Now suppose the league imposes a 20% luxury tax on the payroll of the large market team. MRL = 125 - 125 WL MRS = 65 - 65 WS Find the following: a) Equilibrium win percents for the both the large market and small market teams. b) Price of talent. c) Payrolls for the large market and small market teams. Consider the same marginal revenue functions. Suppose now that teams must share 40% of their revenues (gate receipts) with the opposing team. MRL = 125 - 125 WL MRS = 65 - 65 WS Find the following: a) Equilibrium win percents for the both the large market and small market teams. b) Price of talent. c) Payrolls for the large market and small market teams.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter5: Supply, Demand, And Price: Applications

Section5.8: Application 8: Supply And Demand On A Freeway

Problem 2ST

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