In the Age Before Free Agency, the Labor of Major

Multiple Choice

In the age before free agency, the labor of Major League Baseball (MLB) players was the property of their team owners. The owners had complete control of whether to trade their players away or keep them on the roster. In the period of free agency, players have the right to sell their services to the highest-bidding team. The Coase theorem predicted that:

A) free agency would reduce the salaries of talented players.
B) free agency would allow a select group of teams to purchase all the talented players.
C) the distribution of players' talent in MLB would not be affected by free agency because talent would flow to where it was most valued.
D) the salaries of players would not be affected by free agency.