econ 1

why does a star athelete get paid more than an assistant professor? tell me why in ECON language. hint: I want MRP, supply, and econ rent tossed in 30 secs

high MRP, large econ rent (inelastic) supply is scarce

boom

Star Athlete gets paid more because he/she has a higher Marginal Revenue Product? Also something about short supply of star athletes… Meaning a greater part of their income is comprised of Economic rent as opposed to opporunity cost, whereas a professor has more opportunity cost in their income component due to a larger supply.

roumancesoiree Wrote: ------------------------------------------------------- > Star Athlete gets paid more because he/she has a > higher Marginal Revenue Product? Also something > about short supply of star athletes… Meaning a > greater part of their income is comprised of > Economic rent as opposed to opporunity cost, > whereas a professor has more opportunity cost in > their income component due to a larger supply. perfect