The Fact That Movie Star Angelina Jolie's Salary Is Much

question 119

Multiple Choice

The fact that movie star Angelina Jolie's salary is much higher than the salary earned by the world's best nurse can best be explained by the

• A)failure of the market to reward talent fairly.
• B)large number of nurses.
• C)willingness of some people to accept a lower wage rate in order to do work they find personally rewarding.
• D)superstar phenomenon.

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Definitions:

Contribution Margin Ratio

A measure of how a company's sales revenue contributes to covering its variable costs.

Fixed Costs

Expenses that do not change in total volume with changes in the level of business activity, such as rent or salaries.

Contribution Margin Ratio

A financial ratio that measures how much of each sale is available to cover fixed costs after variable costs have been paid.

Variable Costs

Charges that fluctuate in relation to the volume of business activities or production levels.