16. Marginal productivity theory offers an economic explanation for why a. NBA p

Question

16.    Marginal productivity theory offers an economic explanation for why
    a.    NBA players receive higher salaries than NFL players
    b.    NBA and NFL players receive essentially the same average salaries
    c.    professional athletes always work more when offered higher salaries
    d.    professional athletes do not respond to the offering of higher salaries


17.    The change in an organization’s total revenue resulting from the employment of an additional unit of sports talent describes
    a.    the marginal cost of sports talent
    b.    the marginal product of sports talent
    c.    the marginal revenue product of sports talent
    d.    the organization’s marginal revenue


18.    Which of the following accurately describes labor market equilibrium?
    a.    at the prevailing wage, the quantity of labor demanded and the quantity of labor supplied are equal
    b.    the prevailing wage lies above the intersection of market labor demand and labor supply
    c.    the prevailing wage lies below the intersection of market labor demand and labor supply
    d.    any change in market labor demand results in no change in the market wage

19.    A pro sports franchise that faces a negatively sloped demand function for tickets has a total revenue function that is
    a.    a U-shaped curve
    b.    a flat line
    c.    an inverted U-shaped curve
    d.    a negatively sloped straight line

                    
20.    The offering of discounted ticket prices for senior citizens
    a.    succeeds because senior citizens exhibits lesser price elasticity of demand for tickets than other fans
    b.    succeeds because senior citizens exhibit greater price elasticity of demand for tickets than other fans
    c.    succeeds because ticket prices make up a smaller proportion of senior citizens’ budgets compared to younger fans
    d.    does not work because senior citizens exhibit the same price elasticity of demand for tickets as other fans

Explanation / Answer

16 option a

17 option c, in accordance with definition of Marginal revenue product

As MRP = MR * MP

18 option a

19 inverse u shaped total revenue curve for downwards sloping demand curve

Option c

20 option b, elastic region of demand curve imply greater revenue earning opportunity if prices of a product fall

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