Multiple Choice
Economic models suggest that movie stars have salaries that
A) greatly exceed their marginal contribution to the movie studio's revenue.
B) understate their full contribution to the movie studio's revenue-as the celebrities are the main reason that people go to see movies.
C) are about equal to their marginal revenue products.
D) can only be explained by looking at specific movie stars and their individual salaries.
Correct Answer:

Verified
Correct Answer:
Verified
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