One Reason Why the Average Salary of Major League Baseball

question 11

Multiple Choice

One reason why the average salary of Major League Baseball players is higher than the average salary of college professors is

• A)the careers of most baseball players are much shorter than the careers of most college professors.
• B)the marginal revenue product of baseball players is greater than the marginal revenue product of college professors.
• C)college professors accept lower salaries in exchange for better working conditions.
• D)competition among baseball club owners forces player salaries to be much higher than the players' marginal revenue products.

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Definitions:

Nonpreferences

The absence of a preference or inclination towards any particular option or choice.

Emotion in Decision Making

The influence that feelings and emotional responses have on the process of making choices or judgments.

Escalation of Commitment

A pattern of behavior in which individuals continue to follow a failing course of action or invest more resources in a losing proposition, based on their hope or belief that the situation will improve.

Price War

A competitive strategy where companies continuously lower prices to outdo each other, often at the expense of profit margins, to capture a larger market share.