Which of the following explains why talented major league baseball players command much higher salaries than neurosurgeons?
A)because the total value of baseball games is much higher than the total value of neurosurgery
B)because it takes far more skill and training to be a major league baseball player than to be a neurosurgeon
C)because the supply of talented major league baseball players is relatively low compared to the supply of neurosurgeons. Therefore, major league baseball players exert far more market power than neurosurgeons.
D)because the supply of talented major league baseball players is low relative to its demand compared to the supply of neurosurgeons. Therefore, adding another player yields far greater marginal benefit than adding another neurosurgeon.

Question

Quizplus · Accepted Answer

The supply of talented major league baseball players is relatively low compared to the demand for them, resulting in high salaries. On the other hand, there is a larger supply of neurosurgeons compared to their demand, leading to lower salaries. Furthermore, adding another talented baseball player yields significantly more value than adding another neurosurgeon, resulting in higher salaries for baseball players.

Which of the Following Explains Why Talented Major League Baseball