Why do economists suggest that revenue sharing, in and of itself, will do little to improve competitive balance?
A. Teams receiving revenue-sharing transfers do not receive enough money for it to make a difference.
B. Teams receiving revenue-sharing transfers may have little incentive to use the money to increase payroll, simply choosing to retain the transfer as added profit.
C. Teams receiving revenue-sharing transfers are already the highest payroll teams.
D. Both B and C are correct.
Answer: B. Teams receiving revenue-sharing transfers may have little incentive to use the money to increase payroll, simply choosing to retain the transfer as added profit.
Business