Recall the Application About the Salaries Paid in Major League

Multiple Choice

Recall the Application about the salaries paid in Major League Baseball to answer the following question(s) . Some Major League Baseball players are free agents, meaning they are free to negotiate a contract with any team. Other players are journeymen and apprentices, who are restricted to a single team.
-Recall the Application.How are average salaries of MLB players determined?

A) Salaries are based on the MRP of a player that equals his contribution to the firm's total revenue from ticket sales and television contracts.
B) Firms use a specific formula that is determined by multiplying the total revenue from the player and the total cost.
C) Salaries are based on the diminishing return from each player.
D) Salaries are based on the years that players have been with one team.