How Do You Use the Concept of Scarcity to Explain

question 7

Essay

How do you use the concept of scarcity to explain why a highly paid, star basketball player makes more money than the average player in the league?

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives to solve problems or create useful products.

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold. These are considered liquid assets.

Standard Price

A predetermined cost or selling price of a product or service, often used in budgeting and accounting to measure variances in actual cost or price.

Direct Materials

Raw materials directly used in the manufacturing of a product, easily traceable to the finished product.