Question

Paolo is an owner of a professional sports team in a large league. To promote fairness, the team with the most losses in the league automatically gets the best new player to enter the league next year. Consider the following sentence: In order to get the best new player next year, Paolo orders his team to intentionally lose as many games as possible. Which basic concept of individual choice does this sentence best illustrate? Externalities are a shortcoming of the market. An optimal decision is one that best serves the objectives of the decision maker. All costs are opportunity costs. Opportunity costs and money costs (price) are related, but not always exactly the same.

Answer 1

Answer and Explanation:

According to the given situation, Paola would be rational decision maker and if the team suffered losses so in the next league they would get the best new players so he ordered his team to lose many teams as he is aware of the fact that the opportunity cost of game losing would be closet to zero

So the second option is correct