Question

Bryce Harper, professional baseball player makes millions for hitting a baseball and Fred Smith professional fire fighter makes thousands for saving lives.
The supply and demand labor market explanation for this is

The baseball player should have a hire wage rate since his skills are more scarce and has a higher MRP than the fireman.
Thousands of men and women can be a firefighter but there is only 1 Bryce Harper.

The fireman should have a higher wage rate since he saves lives than someone playing a game.

Answer 1

As Econmics is concerened with dealing with the scarcity of resources hence the skill set requires for being a world class baseball player is scarce and very rare but on the other hand being a firefighter is relatively less skillful hence Marginal revenue productivity of baseball player is high . According to welfare economics the social benefits obtained from firefighter is more than the benifts received from baseball player as the former saves life of the people,but in terms of revenue generation the baseball player with high skills generate more revenue for the team ,sponsors hence they get higher pay than firefighters.