Practice mode Human Capital

What characteristics must a market have in order to support superstars?

Correct answer C. Every customer must want the good supplied by the best producer, and the technology must exist for the best producer to supply every customer at low cost

Explanation

Superstar incomes arise when everyone prefers the very best performer and technology such as broadcasting or printing lets that person reach the whole market cheaply, as Sherwin Rosen described.

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