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Microeconomics Discussion Questions - Coursework Example

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Topic:  Microeconomics Discussion Questions Michael Jordan and others like him command extraordinary salaries for a number of reasons. They happen to have a bundle of talents that is exceedingly rare and in the world of advertising, they inspire loyalty and envy in the minds of a number of potential buyers of merchandise…
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Microeconomics Discussion Questions
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Microeconomics Discussion Questions

Download file to see previous pages... The dispersed sponsorship of many interested parties also expands the costs of the advertising and revenues over a larger pool of potential recipients. In the end, the provision of these seemingly enormous salaries is craftily calculated to ensure that the highest bidder gets to retain Jordon’s talents for maximum return. Economic rent is “any excess payment for a service, good or property above and beyond the minimum amount at which the person receiving payment would still have agreed to the deal.” It refers to the money above and beyond the minimum amount to employ a given resource or employee in this case. There is certainly what some would refer to as inflated salaries in professional sports where about 60% of the revenue goes to a few employees in the company. At the other end of the spectrum, one can visit any number of fast food restaurants and discover that all the employees are making more than minimum wage because the rents are required to attract service staff. Whether a college student, entrepreneur or salaried employee, companies and entities have to offer salaries above and beyond what will satisfy simply keeping the lights on. ...Download file to see next pagesRead More
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