Many professional sports teams operate under a salary cap. This means that teams typically have a fixed amount of money that they can spend on players' salaries - that is, a salary cap. This is true of the National Basketball Association (NBA), for example. Suppose that the NBA has a salary cap of $100 millon dollars, and a team has $30 million available to sign new players. That is, $70 million has already been committed to player salaries. The team has two further possibilities: either sign a star player for $30 million, or sign two good, solid supporting players for $15 million each. What about the opportunity cost of signing the two supporting players? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to selact an answer. 2 supporting players 1 star player %$30 millon There is no opportunity cost
Many professional sports teams operate under a salary cap. This means that teams typically have a fixed amount of money that they can spend on players' salaries - that is, a salary cap. This is true of the National Basketball Association (NBA), for example. Suppose that the NBA has a salary cap of $100 millon dollars, and a team has $30 million available to sign new players. That is, $70 million has already been committed to player salaries. The team has two further possibilities: either sign a star player for $30 million, or sign two good, solid supporting players for $15 million each. What about the opportunity cost of signing the two supporting players? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to selact an answer. 2 supporting players 1 star player %$30 millon There is no opportunity cost
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Many professional sports teams operate under a salary cap. This means that teams typically have a fixed amount of money
that they can spend on players' salaries - that is, a salary cap. This is true of the National Basketball Association (NBA), for
example. Suppose that the NBA has a salary cap of $100 million dollars, and a team has $30 million available to sign new
players. That is, $70 million has already been committed to player salaries. The team has two further possibilities: either
sign a star player for $30 million, or sign two good, solid supporting players for $15 million each.
What about the opportunity cost of signing the two supporting players?
Select an answer and submit. For keyboard navigation, use the up/down arrow kays to selact an answer.
2 supporting players
1 star player
$30 milon
There is no opportunity cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7acc2cc-d74e-49d3-b5f3-209741f49b0b%2F0cbd25d7-1359-424b-b8f5-8e1eef2d936c%2F6ugr1y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Many professional sports teams operate under a salary cap. This means that teams typically have a fixed amount of money
that they can spend on players' salaries - that is, a salary cap. This is true of the National Basketball Association (NBA), for
example. Suppose that the NBA has a salary cap of $100 million dollars, and a team has $30 million available to sign new
players. That is, $70 million has already been committed to player salaries. The team has two further possibilities: either
sign a star player for $30 million, or sign two good, solid supporting players for $15 million each.
What about the opportunity cost of signing the two supporting players?
Select an answer and submit. For keyboard navigation, use the up/down arrow kays to selact an answer.
2 supporting players
1 star player
$30 milon
There is no opportunity cost
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