Babe Ruth was arguably the greatest baseball player of all time. He was a prodigious home run hitter, swatting 714 over his career, most of them while playing for the New York Yankees from 1920 to 1934. Few people remember though that the Babe was also one of the best pitchers in the game prior to joining the Yankees in 1920. Pitching for the Boston Red Sox from 1914 to 1919, Ruth helped the Red Sox win World Series in 1915, 1916, and 1918. After his contract was sold to the Yankees before the 1920 season, the Yankees decided to use Ruth primarily as a hitter. The rest, as they say, is history.
In terms of economics, what economic concept best describes the Yankees decision to use Ruth as a hitter rather than a pitcher? For a hint, click here. (Scroll down to read it all.)