Suppose Billy runs a baseball team but has far less money to pay players than other teams. So he figures out how to find overlooked players who are worth more than other teams realize. Billy pays these players less than other teams would be willing to pay if they knew how good they were. As a result, Billy’s team wins a lot of games without spending much on players. Which of the following is likely not true?

A. Billy’s rent will equal the payroll costs of other teams with a similar number of wins less his payroll costs.
B. Billy’s rent will equal his payroll costs less the payroll costs of other teams with a similar number of wins.
C. When rich teams realize how valuable these players are, they compete for the rent Billy is receiving by offering higher pay.
D. When rich and poor teams realize how valuable the players Billy finds are, they compete for the rent Billy is receiving by copying his methods for evaluating players.


Answer: B

Economics

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