) Suppose an economist states that under a free labor market he expects wages for athletes would be relatively low at Stanford, despite the fact their football program generates a lot of revenue each year, and would have the ability to pay the higher wages for higher quality athletes. What could potentially affect the supply curve for labor for Stanford that wouldn't affect other PAC- 12 schools? Depict the differences in the labor market Stanford faces compared to those other PAC- 12 schools. (HINT: Think of a similar effect for Ivy League schools if they generated enough revenue.) A related question is, why might a higher quality player be willing to take lower wages at Stanford, instead of say Oregon? (Think about costs and benefits of the athletes.)
) Suppose an economist states that under a free labor market he expects wages for athletes would be relatively low at Stanford, despite the fact their football program generates a lot of revenue each year, and would have the ability to pay the higher wages for higher quality athletes. What could potentially affect the supply curve for labor for Stanford that wouldn't affect other PAC- 12 schools? Depict the differences in the labor market Stanford faces compared to those other PAC- 12 schools. (HINT: Think of a similar effect for Ivy League schools if they generated enough revenue.) A related question is, why might a higher quality player be willing to take lower wages at Stanford, instead of say Oregon? (Think about costs and benefits of the athletes.)
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: The Markets For The Factor Of Production
Section: Chapter Questions
Problem 5PA
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