Part 1: Directions: For each question, indicate True or False with an explanation. 1. Specific skills training by the NY Yankees does little to increase the marginal revenue product of a player, outside the team, if they are traded to the Baltimore Orioles. 2. Studies overwhelmingly confirm that cities that host the Olympic Games generally receive economic benefits, but the country overall loses. 3. Analytics measuring baseball pitchers' performances are preferred if they measure factors like HRs, BBs, and similar statistics that are defensively independent of other players. 4. The substitution and income effects of a higher salary both motivate athletes to work additional years as they age. 5. Acity like Detroit should take some of their underutilized land with many abandoned houses and create sports and entertainment facilities in these areas to spur new development. Part 2: Directions: Answer each question clearly, logically, and concisely. 1. As part of a city planning commission, you can either recommend a new stadium be in the midtown area, the downtown area, or in the suburbs. What are the pros and cons of each of these locations. 2. The local stadium is sold out almost every game. A new stadium built with an extra 20% capacity will have what effect on ticket sales and prices? 3. Asoccerteam is currently making $6.75m in profits and is considering a move to a new city where it can make $9.2m in profits. What is the team's accounting profit, economic profit, and opportunity costs of remaining where it is currently located? 4. How does a basketball team evaluate a player's potential to justify a very large contract amount? 5. What are two disadvantages to using a hotel tax to help fund a new stadium? 6. Underwhat conditions should a project with a negative NPV still be considered