The Same Year That Derek Jeter, One-Time Shortstop for the New

question 61

Multiple Choice

The same year that Derek Jeter, one-time shortstop for the New York Yankees, received an annual salary of $23.2 million, the president of the United States received an annual salary of $400,000. If the president of the United States actually contributed more to society than Derek Jeter, we can conclude that:

• A) factors other than marginal revenue product probably explain the salary differences.
• B) the salary differences are based entirely on marginal revenue products.
• C) there is never a relationship between marginal revenue product and pay.
• D) the markets for their respective services are perfectly competitive.