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The Pros And Cons Of Professional Athletes Paid

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The fact that most professional athlete get paid more than the president is crazy. Why are professional athletes paid so much? One of the reason for that is marginal revenue. Marginal revenue is the additional Revenue gained from selling one more unit. So, every time a consumer demands one more unit, the Firm sells one more unit and the revenue goes up by exactly the same amount equal to the market price. Basically, the players produce millions and the get a nice paycheck for their contribution because the labor profits the owners and anyone else who depends on the team success. Marginal revenue does not change as the players produce more output because the amount paid is determined by supply and demand and does not change as players play more.

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