Question

Recently Nick Saban agreed to leave his job as head coach of the Miami Dolphins to take a job as head football coach at the University of Alabama at a salary of $4 million per year for eight years. Boise State paid their coach Chris Petersen $500,000 in 2007 and they went undefeated that season. Might Saban still be worth a salary of $4 million per year to Alabama even if he is not “eight times better” than a coach being paid $500,000 at another school? In your answer, be sure to refer to the marginal product of labor and the marginal revenue product of labor.

Answer 1

The marginal product of Saban is each extra game won by the Miami Dolphins team while he coached the team. It very well may be expressed as far as the result of each extra game played by the team or the effect of his coaching

Then again, the marginal revenue product of Saban is the additional revenue that the Miami Dolphins National Football league gets by utilizing him. It very well may be expressed as far as the extra watchers who watch the game in light of the fact that Saban's name is related with it or the extra gifts made by the school's alumni because of his presence.

As it is known, it is the marginal revenue product of mentors that choose the most extreme salary which is to be paid to the mentors as opposed to the marginal product of the mentors. It is so on the grounds that the marginal product of mentors may be the equivalent for the teams, yet it is the marginal revenue product that shifts relying upon the size of the market and the quantity of fan followings.

The bigger the size of the market and the higher the quantity of fans, the higher will be the marginal revenue that the team will get by utilizing the mentor and the higher will be the salary paid to him.