Which of the Following Statements Accurately Explains the Superstar Phenomenon

question 331

Multiple Choice

Which of the following statements accurately explains the superstar phenomenon in wages?

• A)Better carpenters earn more than average carpenters because people are willing to pay higher prices for higher-quality work.
• B)The more productive an author is, the more books she can write each year, so the more she earns.
• C)Talented movie stars earn more than equally talented mechanics because technology allows the delivery of the services provided by the movie stars to all interested customers.
• D)Athletes get paid for performing services that everyday people perform as hobbies.

---

Definitions:

Suggested Retail Price

The price that manufacturers recommend retailers to sell their products for to consumers, often seen as MSRP (Manufacturer's Suggested Retail Price).

Cash Discounts

A reduction in the price of goods or services offered to buyers as an incentive for early payment or payment in cash.

Quantity Discounts

Price reductions based on the volume or amount of product purchased, incentivizing bulk buying.

Trade Discounts

A reduction in the listed price of a product or service offered by sellers to buyers engaged in trade or commerce.