Writing on the Baseball Prospectus Web site, Dan Fox argued, What a player is re

Question

Writing on the Baseball Prospectus Web site, Dan Fox argued, What a player is really worth depends in great deal on the teams that are interested in signing hinm Source: Dan Fox, "Schrodinger's Bat, baseballprospectus.com, May 17, 2007 Do you agree? Shouldn't a baseball player with a particular level of ability be worth the same to every team? Briefly explain What a baseball player is worth A. B. C. D. E. depends on his marginal product and the price his output sells for, the latter of which is different for each team depends on his marginal revenue product, which is the same for every team. depends on his marginal product and the price his output sells for, both of which are different for each team. depends on the supply of baseball players, which is the same for each team. depends on his marginal product, which is the same for every team.

Explanation / Answer

Option A.

Explanation: The worth of a baseball player is the value of the marginal product of the player. The marginal product of the player remains the same no matter which team he/she plays for. However, the value of the marginal product differs among teams as the different teams are able to sell the marginal product at different rates because of their own fan base, business model, merchandising strategy, and other factors.

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