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Answer to Question #51722 in Economics of Enterprise for Obinna
Question #51722
Explain how each of the following would affect the NHLPA’s bargaining position.
a. Russia’s Kontinental Hockey League signs a large number of NHL stars.
b. A change in the tax laws increases the profitability of owning stock and decreases the profitability of owning a sports franchise.
a. Russia’s Kontinental Hockey League signs a large number of NHL stars.
b. A change in the tax laws increases the profitability of owning stock and decreases the profitability of owning a sports franchise.
Expert's answer
a. If Russia’s Kontinental Hockey League signs a large number of NHL stars, the NHLPA’s bargaining position will improve, because its players are popular in other countries.
b. If a change in the tax laws increases the profitability of owning stock and decreases the profitability of owning a sports franchise, the NHLPA’s bargaining position will become worse, because this kind will be less popular and demanded among the investors.
b. If a change in the tax laws increases the profitability of owning stock and decreases the profitability of owning a sports franchise, the NHLPA’s bargaining position will become worse, because this kind will be less popular and demanded among the investors.
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