Suppose that the competitive wage in an independent hockey league is $100,000 per season. One team owner has a taste for discrimination against all foreign players. As a result, this team owners coefficient of discrimination against European players is 0.15 and his coefficient of discrimination against Canadian players is 0.30.

a) If he pays them the market salary, what salary does he feel he is paying to each group?

b) Given his preferences, what salary would he consider to be "fair" for each group?

c) If the supply of players were perfectly elastic, what would happen to the representation of European, Canadian, and US-born players on the team?

d) Who is going to be better and who is going to be worse off in this situation? Out of: the team owner, other teams owners, European players, Canadian players, US-born players, fans.