Which of the following statements accurately explains the superstar phenomenon in wages?
A) Better carpenters earn more than average carpenters because people are willing to pay higher prices for higher-quality work.
B) Funnier comedians earn more than less funny comedians because they are more talented.
C) Talented athletes earn more than equally talented plumbers because technology allows the delivery of the services provided by the athletes to all interested customers.
D) Athletes get paid for performing services that everyday people perform as hobbies.

Question

Quizplus · Accepted Answer

The superstar phenomenon in wages exists because of technology, specifically the ability to broadcast and deliver services provided by talented athletes to a large audience. This creates a high demand for their services and allows them to command a higher wage compared to other professions with similar levels of talent.

Which of the Following Statements Accurately Explains the Superstar Phenomenon