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Consider the same marginal revenue functions. Now suppose the league imposes a 20% luxury tax on the payroll of the large market team. MRL =

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Consider the same marginal revenue functions. Now suppose the league imposes a 20% luxury tax on the payroll of the large market team. MRL = 125 125 WL MRS = 65 - 65 WS Find the following: a) Equilibrium win percents forthe both the large market and small market teams. b) Price of talent. c) Payrolls for the large market and small market teams

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