Question: For questions 1 and 2 let each team's revenue function be given as follows: 0 Rx = 200wx 100w;g o Ry = 108Wy 100w; Assume

For questions 1 and 2 let each team's revenue function be given as follows: 0 Rx = 200wx 100w;g o Ry = 108Wy 100w; Assume there is a fixed supply of talent and that neither team incurs any fixed costs. Assume the labor market is competitive. 1. Assume Team Y is a profit-maximizer. a. How much would Team Y be willing to pay for: o 0.2 units of talent? o 0.2 units of talent with an equal proportion revenue sharing system where u = 0.8? o 0.2 units of talent with a pooled-revenue sharing system where w = 0.8? Show your work for each calculation. b. Why is there a difference in what Team Y is willing to pay for 0.2 units of talent under the two different revenue sharing systems? Explain why one is higher than the other

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