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LilyGal LilyGal
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Posts: 350
A week ago

Zach Greinke's marginal product as a baseball player would be about the same as a Los Angeles Dodger and a Kansas City Royal. Why were the Dodgers willing to pay Greinke a higher salary than he was paid as a Royal?



The owner of the Dodgers was under more pressure from the fans and the Los Angeles media to pay Greinke a higher salary than the Royals were willing to pay.



The Dodgers play more home games than the Royals. As a result, the Dodgers earn more revenue from ticket sales that they can use to pay player salaries.



The Dodgers needed a superstar to attract fans to their games. The Royals had no need to attract fans to their games.



Greinke's marginal revenue product is higher as a Dodger than it was as a Royal.

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dnlee1dnlee1
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A week ago
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Greinke's marginal revenue product is higher as a Dodger than it was as a Royal.

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