Question

In a highly competitive and ever-changing consumer tastes and preferences, like that for musicians, there are huge differences between the top talents and the next tier of musicians in all of the following aspects, except

Select one:

a. social media followers.

b. marginal revenue product.

c. talent.

d. concert earnings.

Answer 1

Answer Option C

Talent is the only thing which I would say that didn't differ vastly between the top talents and middle level, as the latter is just on the next tier of musicians. In comparison to all the given options, this is the one with least difference.

The difference between top talents and middle level musicians are plethora. Due to the former's fame, they have a huge fan following in social media which is far more when compared to middle level musicians. Take for instance Justin Bieber who has a huge social media fanbase as against some middle level musician who has followers just under a million or so.

By marginal revenue product, we mean the additional revenue generated by utilizing one more unit of resource. Practically this could be an extra music instrument, or an additional singer. Top talents due to their experience can leverage more on these resources than the middle level musicians. Therefore, the huge difference is seen between MRP in top and middle level musicians.

Top talents charge hefty prices for concerts as against middle level musicians, therefore the earnings differ vastly. Once Justin Bieber visited India and charged close to $4 Mn, with ticket prices pretty high as well.

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