Baseball writer Rany Jazayerli assessed the Kansas City Royal\'s outfielder Jose

Question

Baseball writer Rany Jazayerli assessed the Kansas City Royal's outfielder Jose Guillen as follows: "Guillen has negative value the way his contract stands." Source: Rany Jazayerli, "Radical Situations Call for Radical Solutions," ranyontheroyals.com, June 6, 2009. How could a baseball player's contract cause him to have negative value to a baseball team? Jose Guillen would have negative value to the Kansas City Royals if A. his salary is greater than his marginal product B. the additional revenue he generates is greater than his salary. C. the marginal product of labor is decreasing D. his salary is greater than his marginal revenue product. E. his salary is greater than his output.

Explanation / Answer

His salary is greater than his marginal revenue product.

Because he is getting more than he is producing.

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