Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 19 - Part VI - Earnings and Discrimination - Questions for Review - Page 410: 4

Answer

Two factors that lead to highly paid superstars are that all of the consumers in a market want to enjoy the good produced by the best producer and that there is a low cost to every consumer (usually a technological cost).

Work Step by Step

Dentistry and music would likely not have superstars for multiple reasons. There is usually a high cost associated with enjoying the goods produced by a dentist (although consumers do want to enjoy the good). There is usually a low cost in consuming the goods produced by a musician, but not all of the consumers in the market want to consume the goods produced by the best musician.
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