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A baseball team has a budget of $10 million to hire new players for the next season, and each new win is expected to increase
A baseball team has a budget of $10 million to hire new players for the next season, and each new win is expected to increase revenue in $2 million. The estimated Wins Above Replacement (WAR) of players A, B and C, who play in different positions, are 5, 3 and 2, respectively. If the salaries requested by the three players are $10 million, $5 million and $3 million, respectively, and the team owner is only interested in maximizing profits, what player(s) should be hired? Question 4 options: A) Player A only, because is the one that contributes with more wins. B) Player B only, because is the one that contributes with the greatest difference between additional revenue and additional cost. C) Players A and B, because both contribute with positive profits. D) None of them, because the $10 million can be pocketed as profits
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