Question
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In order for a market to support superstars, it must have which of the following characteristics? a. Every customer must want the service supplied by the best producer, and the technology must exist for the best producer to supply every customer at low cost. b. Every customer must be willing to pay an enormous amount for the product, and the product must be a luxury. c. Every customer must be indifferent to the price they pay, and the seller must be a competitor in the market for the product. d. The seller must be involved in professional athletics.

Ask by Burton Martinez. in the United States
Mar 10,2025

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Answer

The market must ensure that all customers prefer the best producer's service and that technology allows the top producer to serve everyone efficiently at a low cost.

Solution

1. The superstar phenomenon relies on having an environment where one individual or firm can dominate due to superior talent or performance. 2. This is possible if every customer desires the specific service provided by the best producer. 3. Additionally, technology or infrastructure must enable the top performer to serve all customers at low cost, ensuring that the best can truly lead the market. 4. Therefore, the necessary condition is that every customer must want the service supplied by the best producer, and the technology must exist for the best producer to supply every customer at low cost. Thus, the correct answer is: **a. Every customer must want the service supplied by the best producer, and the technology must exist for the best producer to supply every customer at low cost.**

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Absolutely! Let's delve into the blurred lines of economic theory and the glitzy world of superstars. Firstly, think about technology. In markets where a superstar can reach a vast audience—like digital streaming or online courses—the wonders of technology allow one skilled individual to cater to countless customers without breaking a sweat. This means if you’re a superstar, you can attract a huge fan base while keeping costs low, all thanks to the internet age. Secondly, consider the broader implications in entertainment and sports. Superstars often flourish in industries where recognition, visibility, and access intertwine. A popular athlete or musician benefits most from a global platform, showcasing that for a market to really support superstars, it’s crucial that there exists a demand for their unique "spark" while ensuring that logistical avenues allow them to reach their audience.

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