Economics

ECON 447: Economics of Sports Homework Assignment 4 You need to show your work. This homework is due Thursday, November 12th at 11:59pm EST via Canvas. Problem 1: Equilibrium in the Labor Market. The aggregate supply of hockey players L as a function of the wage is is given by wa} = l+L There are 6 identical hockey teams in the market, and each team is a monopolist in the market for tickets to their own gamm. The demand curve for hockey tickets for each team is identical and given by ee=ms where q is the number of tickets sold. The production function for each team is given by q[E} = 315'. That is, every hockey player increases the number of tickets sold by 3 units. 1. Assume that the labor market is perfectly competitive. a) Find each teamls labor demand curve. b} Use this to find the market labor demand curve. c} Calculate the equilibrium wage and the total number of hockey players hired in the market. d) Calculate the teams\" surplus and the player surplus. 2. Now suppose that the teams form a league and act as a monopsony. a) Calculate the equilibrium wage and the total number of hockey players hired in the market. b) Calculate the teams' surplus and the player surplus