A professional basketball players' union negotiates a contract that dramatically increases all players' salaries. How would this influence the opportunity cost for a player who was considering giving up basketball to pursue a career in broadcasting?
a. It would not affect the opportunity cost of playing basketball or of broadcasting.
b. It would increase the opportunity cost of continuing to play professional basketball.
c. It would cause the production possibilities frontier to become convex.
d. It would increase the opportunity cost of becoming a broadcaster.
e. It should have no bearing on the player's decision from an economic standpoint.
D
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For a given quantity, the total profit of a perfectly competitive firm is equal to the vertical distance between the firm's total revenue curve and its total cost curve
Indicate whether the statement is true or false
What characteristic of a competitive market has made the "long run pretty short" in the market for iPhone applications?
A) few firms in the market B) ease of entry C) blocked entry D) identical products