In August 1988, the Los Angeles Kings hired Wayne Gretzky for $15 million in cash. The hockey team's decision must have been based on the expectation that
a. Gretzky's opportunity cost will exceed $15 million.
b. Gretzky's marginal revenue product will equal or exceed $15 million.
c. the team's total revenue will equal $15 million.
d. Gretzky's marginal revenue product will rise in the long run.
b
You might also like to view...
Refer to Figure 5-3. If consumers paid the full price of medical services, the equilibrium quantity would be
A) 400. B) 800. C) 1,200. D) > 1,200.
An appreciation of the Mexican peso relative to the U.S. dollar would ________ Mexican firms that are exporting goods to the United States and would ________ Mexican firms that have borrowed in U.S. dollars
A) help; help B) help; hurt C) hurt; help D) hurt; hurt
Over half of the increase in labor productivity in India since 1993 has been due to
A) the growth rate of the capital stock. B) total factor productivity growth. C) a decrease in the population. D) successful infrastructure investment.
Suppose that the amount of computer printers demanded increases by 20 percent when the price of personal computers falls by 10 percent. The cross price elasticity of demand between computer printers and personal computers is
A) 0.5. B) -2.0. C) -0.5. D) 2.0.