Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

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

Answer

Superstars emerge in markets that have the following characteristics: (a) All consumers on the market desire the products provided by the best manufacturer. b) Products are manufactured using a process that makes it possible to offer the product to any consumer at a low cost. I 'd expect to see superstars of music rather than dentistry. The music industry satisfies these features, while this dentistry market does not satisfy them.

Work Step by Step

See above.
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