Woodrum, Brandon
09/02/16
Microeconomics
Module 3
Labor Market
Question - 1 What economic principle justifies the high salaries of some professional athletes? Suppose the manager of a baseball team wants to hire a new pitcher for $4 million per year. Under what circumstances would it make sense for the team to do so?
-The manager of a baseball team can hire a new pitcher for $4 million per year only if the team is doing well and earning so much that can afford the salary of new pitcher or team having many funds. Not a lot of individuals having the ability required to hit a 100mph fastball tailing in on the hands? The truth of the matter is that competitors born with exceptional gifts that different from the average player so they can parlay their capacity into a multimillion dollar contract. Another variable to consider is that your players are at risk of injury, which would prevent them from producing the scores you anticipated when purchasing that individual. For example, the regular profession length of an NFL player is just 3 to 6 years, which implies that their opportunity to produce wins is limited. The main goal should be considering the average expectancy of the player leading possible growth and total revenue, then weigh that against the total cost of the player.
Question – 2 Assume that the government of the state of …show more content…
The changes in demand would increase due to the new regulations in which, require these products to remain at a specific working condition. the quality of the work must be at par with the regulations otherwise there could be serious repercussions. Suppose that the demand for apartments increase, the price and quantity of the apartments would also begin to rise. A higher price for apartments would increases the marginal revenue for complexes. In summery if the market was composed of only highly qualified electricians the probability of accidents and casualties would substantially
09/02/16
Microeconomics
Module 3
Labor Market
Question - 1 What economic principle justifies the high salaries of some professional athletes? Suppose the manager of a baseball team wants to hire a new pitcher for $4 million per year. Under what circumstances would it make sense for the team to do so?
-The manager of a baseball team can hire a new pitcher for $4 million per year only if the team is doing well and earning so much that can afford the salary of new pitcher or team having many funds. Not a lot of individuals having the ability required to hit a 100mph fastball tailing in on the hands? The truth of the matter is that competitors born with exceptional gifts that different from the average player so they can parlay their capacity into a multimillion dollar contract. Another variable to consider is that your players are at risk of injury, which would prevent them from producing the scores you anticipated when purchasing that individual. For example, the regular profession length of an NFL player is just 3 to 6 years, which implies that their opportunity to produce wins is limited. The main goal should be considering the average expectancy of the player leading possible growth and total revenue, then weigh that against the total cost of the player.
Question – 2 Assume that the government of the state of …show more content…
The changes in demand would increase due to the new regulations in which, require these products to remain at a specific working condition. the quality of the work must be at par with the regulations otherwise there could be serious repercussions. Suppose that the demand for apartments increase, the price and quantity of the apartments would also begin to rise. A higher price for apartments would increases the marginal revenue for complexes. In summery if the market was composed of only highly qualified electricians the probability of accidents and casualties would substantially