{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Principles of Economics- Mankiw (5th) 413

Principles of Economics- Mankiw (5th) 413 - CHAPTER 19 E A...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 19 EARNINGS AND DISCRIMINATION 425 Every customer in the market wants to enjoy the good supplied by the best producer. The good is produced with a technology that makes it possible for the best producer to supply every customer at low cost. If Robin Williams is the funniest actor around, then everyone will want to see his next movie; seeing twice as many movies by an actor half as funny is not a good substitute. Moreover, it is possible for everyone to enjoy the comedy of Robin Williams. Because it is easy to make multiple copies of a film, Robin Williams can provide his service to millions of people simultaneously. Similarly, because foot- ball games are broadcast on television, millions of fans can enjoy the extraordinary athletic skills of Brett Favre. We can now see why there are no superstar carpenters and plumbers. Other things equal, everyone prefers to employ the best carpenter, but a carpenter, unlike a movie actor, can provide his services to only a limited number of customers. Al-
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online