Economics For Today
9th Edition
ISBN: 9781305507074
Author: Tucker, Irvin B.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 11.3, Problem 1YTE
To determine
Explain the opinion about the payment of college athletes.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Using MRP, explain why athletes typically are not included in the top salaries for celebrities in the United States
difference between induced and indirect economic impact for the NFL.
Is there salary fairness in professional sports?
Chapter 11 Solutions
Economics For Today
Ch. 11.3 - Prob. 1YTECh. 11 - Prob. 1SQPCh. 11 - Prob. 2SQPCh. 11 - Prob. 3SQPCh. 11 - Prob. 4SQPCh. 11 - Prob. 5SQPCh. 11 - Prob. 6SQPCh. 11 - Prob. 7SQPCh. 11 - Prob. 8SQPCh. 11 - Prob. 9SQP
Ch. 11 - Prob. 10SQPCh. 11 - Prob. 11SQPCh. 11 - Prob. 1SQCh. 11 - Prob. 2SQCh. 11 - Prob. 3SQCh. 11 - Prob. 4SQCh. 11 - Prob. 5SQCh. 11 - Prob. 6SQCh. 11 - Prob. 7SQCh. 11 - Prob. 8SQCh. 11 - Prob. 9SQCh. 11 - Prob. 10SQCh. 11 - Prob. 11SQCh. 11 - Prob. 12SQCh. 11 - Prob. 13SQCh. 11 - Prob. 14SQCh. 11 - Prob. 15SQCh. 11 - Prob. 16SQCh. 11 - Prob. 17SQCh. 11 - Prob. 18SQCh. 11 - Prob. 19SQCh. 11 - Prob. 20SQ
Knowledge Booster
Similar questions
- What economic principle justifies the high salaries of some professional athletes? Suppose the manager of a baseball team wants to hire a new pitcher for $4 million per year. Under what circumstances would it make sense for the team to do so?arrow_forwardSuppose 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.arrow_forwardWhich of the following is part of the impact of restricting payments to college athletes? a. All athletes are paid less than their marginal revenue products b. Athletic departments make greater profits, which allows them to subsidize the school’s academic mission c. The demand for tickets and broadcast rights have been found to rise because of the popularity of amateurism among fans d. Rents are transferred from players, who are disproportionately black, to coaches who are largely whitearrow_forward
- The demand for NHL players can be written as: Qd=300-W , where Qd - number of players demanded by the league, W - wage of the player (you can think about it as of price). Marginal revenue: MR=300-2Q The supply of players: Qs=W, where Qs - number of players willing to play. ME=2Q . a) Imagine that both sides of the market are perfectly competitive. What is the equilibrium number of players in the league and what is the equilibrium wage? Show it on a graph. b) Imagine that players are represented by a union (monopoly), and the NHL teams compete for the players. What is the equilibrium number of players (Qu) and equilibrium wage (Wu) in this case? Show it on a graph. c) Imagine that NHL makes all the decision as a single entity (monopsony), and the players are not unionized. What is the equilibrium number of players (QNHL) and equilibrium wage (WNHL) in this case? Show it on a graph. d) What is going to be the equilibrium number of players in the league and what is the…arrow_forwardExplain what the invariance principle is within the sports labor market? What does this mean about the measures leagues put into place to promote competitive balance, like the reverse order draft?arrow_forwardIs the National Football League (NFL) a monopsonistic labor market? Why or why not? Your answer should include discussion about what a monopsony is.arrow_forward
- Why are professional athletes paid so much? Discuss. Include economic concepts/terminology (marginal revenue product?) in your posting.arrow_forwardThe English Premier League currently has no salary cap but is considering implementing one. They are doing this, in part, to reduce payroll disparities across teams that create competitive imbalance. How would the reduction in payroll imbalance affect the Gini Coefficient for the English Premier League?arrow_forwardIn a well-functioning market economy, who ultimately bears the cost of employment discrimination (failing to hire an otherwise qualified applicant due to an irrelevant variable), the employer or the applicant? Given this result, what is the optimal role for government regulation in hiring practices? Why? Be sure to consider costs and benefits in your answer. Consider University of Alabama football, what was the chief factor in integrating the football team, societal and regulatory pressures or results on the field?arrow_forward
- 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.arrow_forwardUse labor supply and demand graph to illustrate the effect on league salaries (show old and new equilibrium salary) of: (a) An increase in the number of players available (b) A minimum salary set above the equilibrium level (c) The teams are now how to pay more for the players’ health insurancearrow_forward5Depict 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.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning