Explain why a superstar basketball player can earn $3 million a year, year after year, without facing competition from other players who would work for considerably less
The superstar, with a unique talent, cannot be substituted by another player without productivity being
affected. The player is in a noncompeting labor market with a supply curve that is virtually unaffected by
others willing to enter that labor market.
You might also like to view...
The Smoot-Hawley Act was enacted in
A) 1980. B) 2000. C) 1930. D) 2010.
In the above figure, a price ceiling of $2 would
A) create a shortage. B) create a surplus. C) have no effect. D) cause the demand curve to shift leftward.
The physical capital used by a woodworker to make furniture would include:
a) saws and rills b) wood and glue c) hard work and time d) a workshop and money
Consider a market for fish whose market demand and market supply for fish are specified as Qd = 300 ? 2.5P and Qs = ? 20 + 1.5P, respectively. The government decides to impose a price floor of $50 per ton. What would be the resulting market distortion?
A. Shortage of 175 tons of fish B. Surplus of 120 tons of fish C. Shortage of 120 tons of fish D. There would be no market distortion