Explain how breaking up the monopsony that baseball team owners had in the players' market could raise the incomes of the players
If the baseball owners were forced to bid against each other for players, their monopsony power would
disappear and the players' wages would rise from the monopsony to the competitive wage. Each team
would face a horizontal marginal labor cost curve at the market wage and hire up to the point where the
marginal revenue product equals the market wage. Essentially, the correct answer explains that the
monopsony wage lies below the competitive wage.
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Adam Smith noted that people are adept at which of the following?
a. Confusing themselves if given the chance. b. Proving the truth of "Murphy's Law." c. Denying themselves for the sake of others. d. Pursuing their own self-interest. e. All of the above are correct.
A crucial difference between the impact of an import quota compared to a tariff is that:
A. import quotas generate revenue to the domestic government, but tariffs do not. B. import quotas generate no revenue to the domestic government, but tariffs do. C. tariffs increase the prices paid by domestic consumers, but quotas do not. D. both (a) and (c)
Suppose that recent studies conclude that high-fiber diets do not reduce the risk of developing colon cancer as was previously thought. The likely result will be that the:
A. price of high-fiber foods will rise. B. quantity demanded of high-fiber foods will fall. C. demand for high-fiber foods will decrease. D. supply of high-fiber foods will increase.
Several years ago while teaching in Russia, I was using a production function like the ones used in this text. Output is a function of labor, capital and technology. One professor asked me how I could talk about production without including all the inputs that go into the process. Write a response to this professor from what you know of a production function.You should focus on the concept of value added production.
What will be an ideal response?