What are the answers from part a through part e?

2. (This question uses the 'open box' diagram for a two-team league that we discussed in class, see ECN_345_8 lecture slides on Canvas.) Consider a league that is comprised of a largerevenue (L) and a smallrevenue (S) team. wL and ws are their respective winning percents, and their ' marginal revenue functions due to winning are (values in millions of dollars): V MRL': 100 - l'OOWL MR3 = 60 60ws - ' ya. What will be the values of wL and ws in equilibrium? Show them graphically using a careilly drawn \"open box\" diagram, (note: WL +'ws 3 1 9 ws = 1 wL). b. What is the equilibrium price of a unit of talent (equal to the price of a unit of win percent)? Show it graphically as well. c. Compute the equilibrium total payroll for each? Identify the payrolls graphically. d. / Suppose the league, in an effort to improve competitive balance, decides to implement a luxury tax on the large market team of 20%.. Determine the new values for WL and WS, the new price .of talent, and the new total payrolls. Show these results graphically in a new carefully mam graph. (Hint: the large market team's marginal revenue is now (1 t)MRL, Where t is the luxury tax.) ' i g a luxury tax, (Lei): ate this outcome? e. "Suppose the league has'decided that they want to create perfect balance usin WL = W}; = 0.5). What size tax would the large market team have to face to ere