Let us define Free agency as a professional athlete who is not under contract and is free to auction off his or her services and sign a contract with the team that offers the most money. Use a graph to show the effect of free agency on the wages paid by a team in the NHL. Assume that prior to free agency players could only play for the team that drafted them.

Let us define Free agency as a professional athlete who is not under contract and is free to auction off his or her services and sign a contract with the team that offers the most money. Use a graph to show the effect of free agency on the wages paid by a team in the NHL. Assume that prior to free agency players could only play for the team that drafted them.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter8: Market Failure

Section: Chapter Questions

Problem 9P

See similar textbooks

Similar questions

Explain how the presence of a superstar basketball player can increase the marginal revenue product of the other players on the team.
Use a 3 different supply and demand graphs to show the effect on league salaries of (a) A decrease in the number of players available. (b) An increase in television revenues due to fan preferences for sports. (c) A roster limit set less than equilibrium quantity. Be sure to lable all axis, curves and the origianl salary and the new salary.
Use a labor supply and labor demand graph to show why salaries in the NBA went down during the Great Recession. Explain why the curves moved the way they did.
Suppose that the competitive wage in independent hockey league is $100,000 per season. One team owner has a taste for discrimination against all foreign players. Her coefficient of discrimination against European players is 0.15, and her coefficient of discrimination against Canadian players is 0.30. a) If she pays them the market salary, what salary she feels she is paying to each group? b) Given her preferences, what salary she will consider to be “fair” for each group? c) If the supply of players were perfectly elastic, what would happen to the representation of European, Canadian, and US-born players on the team? d) Who is going to be better and who is going to be worse off in this situation? Out of: the team owner, other teams owners, European players, Canadian players, US-born players, fans.
5Depict the following scenario using a graph. Assume that Major League Baseball goes from having free agency in their labor market to re-instituting the reserve clause, now giving teams monopsony power in the labor market. a. Identify on a graph the wage of a player when there was only free agency, and identify the wage following the reserve clause being reinstated. Additionally, identify where the producer and consumer surplus is in the market on the graph. b. Suppose instead that MLB does NOT have any monopsony power, however, the players are able to form a powerful union. Depict how the union would change the equilibrium wages accepted by players.
What is the figure use to calculate the economic impact of a sports even like the NFL super bowl?
From an economic perspective, the efforts of professional football, baseball, and basketball players in the United States to win the right to become free agents was really an effort to a. Raise wages to the level of the players' MRP. b. Raise wages to competitive levels. c. Reduce the supply of professional players and thus increase wages. d. Raise wages above the level of the players' MRP.
Joe is a college football player considering whether to attend another year of college or to enter the NFL draft and become a professional football player. Which of the following thoughts reflects the concept of marginal analysis? (A) Another year of college football will make me better prepared in the future, but I risk getting injured if I do so. (B) I should have a college degree. (C) If I continue in college, I will give up $405,000 in income. (D) I played on average 10 games per year as a college player and will play an average of 15 games per year in the NFL. (E) If I continue in college, I will give up a salary as well as potential income from endorsing products.
Is there salary fairness in professional sports?
a. Why would a firm ever choose to offer profit-sharing to its employees in place of paying piece rates? b. Describe the free-riding problem in a profit-sharing compensation scheme. How might the workers of a firm “solve” the free-riding problem?
1. Write a sentence or two defining the following terms in your own words. Give examples of each. a. Allocate b. Absolute Advantage c. Capital d. Cyclical e. Demand Curve f. Discouraged Workers g. Planned System h. Public Goods i. Recession j. Dishonest workers k. Elastic Demand l. Entrepreneurship m. Federal Reserve n. Frictional o. Resources p. Scarcity q. Substitute Goods r. Monopoly s. Oligopoly t. Induced u. Inelastic Demand v. Inflation w. Law of Comparative Advantage x. Law of Diminishing Demand y. Market Equilibrium Point z. Market System 2. Compare and contrast Macroeconomics and Microeconomics. Give specific details and examples. 3. Describe the economic cycle. Give specific details and examples.
when selecting the lineup for relays, teams start with the slowest runner and finishwith the fastest. In Beijing 2008, Jamaica were the hot favorites to win the 4 X 100 since theUK and USA were disqualified in the semis. Moreover, Usain Bolt came into the lineup. Thisleft the Jamaicans to make a key decision: Which position should they run Bolt? Look at thesplits both Bolt and Asafa Powell had and mention which position each runner should havecome in in race time.