Which of the following statements best defines the economics of the so-called superstar effect in the labor market? a. This effect occurs in cases in which individuals with small productivity differences receive very small differences in compensation. b. This effect usually occurs in industries in which a labor union has far-reaching powers. c. This effect occurs in cases in which individuals with small productivity differences receive vastly different compensation. d. This effect will result in cases in which individuals with large productivity differences receive vastly different compensation. e. This effect occurs when the firm hiring the superstar simply does not understand the term marginal-revenue product.

Question

Business

Mollie Gutierrez

9 July, 11:01

Which of the following statements best defines the economics of the so-called superstar effect in the labor market? a. This effect occurs in cases in which individuals with small productivity differences receive very small differences in compensation. b. This effect usually occurs in industries in which a labor union has far-reaching powers. c. This effect occurs in cases in which individuals with small productivity differences receive vastly different compensation. d. This effect will result in cases in which individuals with large productivity differences receive vastly different compensation. e. This effect occurs when the firm hiring the superstar simply does not understand the term marginal-revenue product.

+4

Answers (1)

Know the Answer?

Bree · Answer 1

The correct answer for the question that is being presented above is this one: " e. This effect occurs when the firm hiring the superstar simply does not understand the term marginal-revenue product." The statement that best defines the economics of the so-called superstar effect in the labor market is that e. This effect occurs when the firm hiring the superstar simply does not understand the term marginal-revenue product.