Many minor league ballplayers get called up to play in the majors and then get sent back down again to the minors. Jim makes $26,000 in the minors and then when he gets called up he makes $125,000, though he never plays and is an unknown name to the fans. It is most likely true that

A. A portion of Jim's major league salary is economic rent.
B. Jim is irrational to accept only $26,000 in the minor leagues.
C. Jim was playing for way below the value of his marginal product in the minor leagues.
D. Jim's productivity suddenly increases by $99,000 when he is called up to the majors.


Answer: A

Economics

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