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

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