In order for a market to support superstars it must have which of the following characteristics ?
Correct answer: D. 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
- A. It must be involved in professional athletics
- B. Every customer must be indifferent to the price they pay, and the seller must be a competitor in the market for the product
- C. Every customer must be willing to pay an enormous amount for the product and the product must be a necessity
- D. 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
A superstar market requires buyers to prefer the best producer and technology that lets that producer serve many customers at low marginal cost. These conditions produce very large rewards for small differences in talent.
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