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1. What is the competitive balance argument for why student-athletes should not be paid? 2. How...

1. What is the competitive balance argument for why student-athletes should not be paid?

2. How does the ceiling on the pay to student-athletes impact competitive balance in college sports?

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Answer #1

Answer:

1. First of all, students athletes are also "students: if they were to be paid, others students would also demand for the payment which couldn't be justified anyhow.

Secondly, collages do not have enough fund to support such kind of payment culture.

2. Ceiling on pay to student athletes means the maximum limit on the pay. This implies decrease in pay below equilibrium pay where supply and demand of athletes are equal. Decrease in pay will lead to decrease in student supplied and increase in student demanded. This creates a shortage of athletes in collage sports.

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