w = 50,000 + 10,000L
where w is wages, L is the number of players
The demand for players is given by the Marginal Revenue
Product:
MRP = 500,000 – 20,000L
The Marginal Factor Cost to the club is :
MFC = $50,000 + 25,000L
If the NFL labor market were competitive, what would be the
equilibrium number of players employed?
If the NFL labor market were competitive, what would be
the equilibrium wage of a player?
We know that...