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Consider a professional sports team to be a profit maximizer

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Reference no: EM132336324

Question

In the world of professional sports teams which have an operating profit often have a worse win-loss record compared to teams with lower operating profits or an operating loss (teams with the best players win, and the best players cost money).

(a) Would you consider a professional sports team to be a profit maximizer? Please explain.

(b) If your answer to (a) is no, then what financial reason is there for anyone to own a professional sports team? Please explain

Reference no: EM132336324

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