It is widely known among baseball enthusiasts that Babe Ruth actually performed quite well as a pitcher before leaving the Boston Red Sox for the New York Yankees. He was also of course a famously successful hitter
Why do you believe the Yankees chose not to use him as a pitcher? Explain using economic reasoning. Hint: pitchers typically only play every third or fourth game whereas other players in other positions play in nearly every game. Baseball has a season of 162 games.
The economic reasoning probably had something to do with opportunity cost. Even though the Yankees may have won most of the games when Babe Ruth was pitching he would no doubt be able to contribute to more wins as a hitter since he would be playing in more games as an outfielder or any other non-pitching position. The opportunity cost of having him as a pitcher was simply too high in terms of the number of games that would be lost when he wasn't playing.
You might also like to view...
Capital is a factor of production. Which of the following is an example of capital?
i. $1,000 in money ii. 100 shares of Microsoft stock iii. $10,000 in bonds issued by General Motors iv. a drill press in your local machine shop A) i and ii B) ii only C) iii only D) iv only E) ii and iii
Executives should
A) spend an additional dollar on an activity if consumers value it by more than a dollar. B) do more of something if marginal revenue is positive. C) pend an additional dollar on an activity if consumers value it by less than a dollar. D) do more of something if average revenue is greater than zero.
Suppose that 50 hot dogs are demanded at a particular price. If the price of hot dogs rises from that price by 5 percent, the number of hot dogs demanded falls to 48 . Using the midpoint approach to calculate the price elasticity of demand, it follows that the
a. demand for hot dogs in this price range is unit elastic. b. price increase will decrease the total revenue of hot dog sellers. c. price elasticity of demand for hot dogs in this price range is about 1.22. d. price elasticity of demand for hot dogs in this price range is about 0.82.
The exchange rate between yen and dollars at one point in 2010 was 83 yen per dollar. If a Big Mac, fries, and a Coke cost $3.91 in San Francisco, how much should the same order cost in yen in Osaka?
A. 0.03 B. 325 C. 392 D. 422