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What would be the effect of a team relocating into an existing large market (for example, say a third MLB team moved into New York
What would be the effect of a team relocating into an existing large market (for example, say a third MLB team moved into New York City)? Use the simple large revenue market/small revenue market model to show and explain the before and after effect of this event on (a) equilibrium winning percent and (b) the price paid to players. Be sure to show the graph and identify changes on the graph.
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