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1. This question pertains to wages and salaries. I want to discuss the factors that determine professional athletes' salaries.

2. Identify a firm or type of business that periodically shuts down their operations. Identify the economic conditions that exist (e.g., fixed costs and variable costs vs. revenues) when they shut down their operations, and the economic conditions that exist when they resume their operations. Be sure to identify what costs they avoid by shutting down, and which costs are fixed costs (incurred even when shut down).

I want to incorporate the answers to both question in separate papers, using at least 150-200 words and at least one reference per question.
Thank you for you help!

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The response address the queries posted in 602 words with references.

// We all know that professional sports business attracts the attention of most of us for the reason that they involve huge sums of money and because the way sports are managed is very similar to managing another businesses. Here, we will examine the economics of professional athlete's salaries and the determining factors.//

As already stated, people find business of athletics interesting because of the disputes, management issues, charges on players and their high salaries. Professional sports involve millions of dollars and entertains millions of fans every year. The economic decisions are well thought upon and as complex in nature as any other business, with the aim of maximizing the profits. For providing this entertainment, athletes are paid high salaries, leading to the common perception that they are overpaid. It is interesting to note that while the salary levels are high, the economic forces that help in determining the salaries are similar. Wages and salaries are decided by analyzing the market. In general labor market, the quantity supplied of labor rises as wages increase (The Economics, 2005). Demand is dependent on the marginal revenue product of labor (MRP). Workers produce output that is of value and wages depend upon the amount that is produced, known as product and revenue generated upon selling the product. In professional sports, an athlete's product is the ...

Solution Summary

The response address the queries posted in 602 words with references.