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It is common to hear comments like:

It is common to hear comments​ like: "Why do baseball players earn millions of dollars a year for their negligible contribution to society while major contributorslong dash such as​ schoolteachers, police​ officers, firefighters, and ambulance driverslong dash earn barely enough to​ survive?" Offer an answer based on your knowledge of factor market.


A.

Wages of​ schoolteachers, police​ officers, firefighters, and ambulance drivers are paid by the​ government, which always tries to cut its spending.

B.

The talents required to play major league baseball are very​ scarce, and the marginal revenue product is high.

C.

Rich players pay a lot of​ taxes, so that their real income is comparable to​ schoolteachers' income.

Top Answer

B. The talents required to play major league baseball are very​ scarce, and the marginal revenue product is high. Scarce... View the full answer

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  Factor market a.   School teachers, police officers, firefighters and ambulance drivers are paid by the government... View the full answer

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