The Boston Red Sox (a large market team) has a total revenue curve TR=200w-w2 while the Kansas City Royals (a small market team) has the total revenue curve TR-=50w-w2 . Both teams can acquire talent at a constant marginal cost of 10 (TC=10w)
(a) If both teams maximize profit, how many wins will each have?
(b) Assume that the Royals decide to maximize wins instead of profits. How many wins can the royals "buy" and still breakeven?
