Suppose that there is a reserve clause in the standard player contract.Hammerin’ Hank is paid $200,000 by the Dodgers even though his value to the team is $800,000. For the Giants, Hank’s value would...

Hank is paid $200,000 by the Dodgers even though his value to the

team is $800,000. For the Giants, Hank’s value would be $1.2million.

a. Will the Dodgers sell Hank’s contract to the Giants? Explain why or

why not.

b. If Hank’s contract were sold, how much would he be paid to play for

the Giants?

c. If Hank’s contract were sold, how much would the Dodgers get for

him?