Question

In: Economics

a) Explain why economists argue that the economic impact of sports teams is much less than...

a) Explain why economists argue that the economic impact of sports teams is much less than
usually claimed, what it costs the city, and why the city isn’t going to make its money back.

b) Explain in economic terms how a sports league makes the decision to expand or not to

expand. Make sure to explain the economic goals of the league.

Solutions

Expert Solution

Answer)

Yes, the economic impact of sports team is much less than usually claimed . Sports is related to economics as players, coaches and sport agents act as hypothetical decision - makers in the economy. The main incentive behind economic idea is financial or related to money. It is harboured on other factors too like labour market discrimination on race and gender as well as growing competition around the world. These factors show how impact of sports team is less on cost which means they pay less than what is due to the players for their services to the team.

The economic goals of sports league can be enumerated as under :

  • Basic assumption underlying economic models is maximisation of firm's profit. It can be correlated with sports as coach maximizing his team's choice of winning games.
  • Teams being rational have the ability tolearn from past mistakes and behaviour.
  • A sports league is a Monopsony which means one buyer and many sellers of the product. Here, product refers to player's services. The League has market power as it pays less to the player than their contribution to the team.
  • This is the major economic impact as this is the case of market imperfection due to discrimination in pay to the players.

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Explain how economic growth is measured and how and why economists such as Nicholas Stern argue...
Explain how economic growth is measured and how and why economists such as Nicholas Stern argue that there might be a conflict between the policy objective of growth and the policies to deal with the problems of climate change? Word Limit: 200 words
Economists argue that some environments are more conducive to economic growth than others. One of the...
Economists argue that some environments are more conducive to economic growth than others. One of the ways economists differentiate one environment from another is in terms of its institutions. An institution is “the rules of the game in a society or, more formally, the humanly devised constraints that shape human interaction: the rules and regulations, laws, customs, and business practices of a country.” Do you agree that institutions are conducive to economic growth? If so, how? Briefly discuss.
Economists argue that some environments are more conducive to economic growth than others. One of the...
Economists argue that some environments are more conducive to economic growth than others. One of the ways economists differentiate one environment from another is in terms of its institutions. An institution is “the rules of the game in a society or, more formally, the humanly devised constraints that shape human interaction: the rules and regulations, laws, customs, and business practices of a country.” Do you agree that institutions are conducive to economic growth? If so, how? Briefly discuss. Search entries...
Economists argue that some environments are more conducive to economic growth than others. One of the...
Economists argue that some environments are more conducive to economic growth than others. One of the ways economists differentiate one environment from another is in terms of its institutions. An institution is “the rules of the game in a society or, more formally, the humanly devised constraints that shape human interaction: the rules and regulations, laws, customs, and business practices of a country.” Do you agree that institutions are conducive to economic growth? If so, how? Briefly discuss.
Explain why economists argue that all cases should be plea bargained (and why there should not...
Explain why economists argue that all cases should be plea bargained (and why there should not be trials). Also, explain why divergent beliefs can justify the existence of jury trials.
Why might some economists argue that plentiful commodities (natural resources & minerals) might be an economic...
Why might some economists argue that plentiful commodities (natural resources & minerals) might be an economic drag overall? What is your view, as for example regarding Russian oil and other such examples? discus through the article.... Raw materials need not undermine the countries that export them THE LAMP POSTS in Kliptown, South Africa, do not all stand up straight. One lists awkwardly, laden with cables carrying stolen electricity to a squatters' settlement nearby. Many families in this suburb of Soweto,...
Some economists argue that the government intervention makes the economic outcome even worse. Some argue that...
Some economists argue that the government intervention makes the economic outcome even worse. Some argue that there are important economic roles of the government. What is your opinion? Does the government do good or bad? Briefly discuss.
Explain why many economists argue that the free market benefits both sides of the market
Explain why many economists argue that the free market benefits both sides of the market
Explain why some economists argue that payment by cheque is the same as giving trade credit....
Explain why some economists argue that payment by cheque is the same as giving trade credit. If this is the case and considering that cheques are drawn on bank current accounts (as are payments by bank debit cards), do cheque payments count as money?
Explain why most economists would argue that a two-in/one-out rule for regulation is not consistent with...
Explain why most economists would argue that a two-in/one-out rule for regulation is not consistent with a cost-benefit approach to regulation. Give a potential rationale that would be used by some economists who believe that in practice it is. Define a regulatory approach. Repeat the previous analysis for a policy with a (small) regulatory budget.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT