The Owners of Sports Franchises Often Complain That Free-Agency (Open

Multiple Choice

The owners of sports franchises often complain that free-agency (open bidding for player services) threatens their profitability and thus their long-run viability.Given your knowledge of perfect competition,which of the following is correct?

A) Team owners might be correct in as much as free-agency bids up the price of players so that economic profits from those players equal zero.
B) Team owners might be correct in as much as free-agency bids up the price of players so that economic profits from those players is negative.
C) Team owners are lying, as free-agent salaries are still much too low.
D) Team owners are telling the truth, as free-agent salaries are much too high.