ECO102H1 Lecture Notes - Tiger Woods, Marginal Product, Canada Day
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ECO102H1 Full Course Notes
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Average earnings (year 2010 dollar), full-time workers in canada. Ans: value of marginal product of the last worker hired. How can economics theory (vmp) be true in light of: 1) celine dion and tiger woods: million per year. 2) slightly less talented professionals: ,000 per year. 3) earning differential has increased sharply over time. Now: income derived from cds (everyone can consume the best ) Now: income derived from tv (everyone can consume the best ) 19th century: income derived from ticket sales at tournaments. The same concept: everyone can consume (sparked by viewer interest), extremely high value of marginal product. Best plumber in toronto: per hour. Answer: only one customer at a time can purchase service of best plumber. Elastic supply of individuals (low opportunity cost) willing to work as day care workers. For simplicity, assume ss is perfectly elastic and that supply if of large number.
