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Marginal productivities cannot be compared

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Reference no: EM131981723

The President of the United States receives an annual salary of $400,000. Aaron Judge, outfielder for the New York Yankees and the American League Rookie of the Year in 2017, will receive an annual salary of $622,300 million in 2018. Based on marginal productivity theory and assuming these markets are competitive, this salary differential indicates that: a. Aaron Judge contributes much more to society than does the President of the United States. b. the President of the United States contributes much more to society than does Aaron Judge. c. Aaron Judge and the President of the United States make equal contributions to society. d. the salary differential between Aaron Judge and the President of the United States indicates that their marginal productivities cannot be compared.

Reference no: EM131981723

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