Why is it more difficult for a firm to calculate the marginal revenue product of a player in the industry of professional sports versus that of a worker in a competitive manufacturing industry?
What will be an ideal response?
The owner of a professional sports team can only estimate how much value adding a particular player will have in terms of increased ticket sales and increased television revenue. However, even if the player is just as productive as always fans may lose interest and ticket sales can drop because the team is doing poorly or other factors independent of the player's productivity in the game. In a manufacturing industry it is usually easier to calculate the marginal productivity of a worker since it is something that is easily observed. Also, the price in a competitive manufacturing industry is likely to be more stable and thus the MRP as well.
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We typically think of labor as a variable cost, even in the very short run. However, some labor costs may be fixed. Which of the following items represents an example of a fixed labor cost?
A) An hourly employee B) A temporary worker who is paid by the hour C) A salaried manager who has a three-year employment contract D) none of the above
Which of the following statements is true?
a. Discrimination against women and blacks reduces the demand for these workers resulting in lower wages paid these workers. b. Discrimination is no longer a problem in the United States. c. A negative income tax system is a plan where everyone pays the same percentage of their income as taxes. d. A negative income tax system is a plan where those below a certain income receive a cash payment from government.