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A simplified sports league with 2 teams has a Large market team and a Small market team. The Large market team generates more marginal revenue for every increase in Win proportion, so MRL = 90-90W, and MRs-60-60WS. a. Graph the 2 team league equilibrium with the horizontal axis increasing in Wi What is the equilibrium price the teams pay for Win proportion? b. What is the competitive balance in the league? Le., what are Wi and Ws? c. How much does each team spend on talent in equilibrium?

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