Which of the following arguments best explains the high pay of actor Tom Cruise?

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Sean

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May 13, 2008
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A. A strong union (the Screen Actors Guild)

B. Wage-related rent

C. Human capital theory

D. Compensating wage differentials

E. Efficiency wages
 
Sean said:
A. A strong union (the Screen Actors Guild)

B. Wage-related rent

C. Human capital theory

D. Compensating wage differentials

E. Efficiency wages
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This post is super old, but the answer is:
E. Efficiency Wages - Economic rent measures the return that a worker, such as Tom Cruise, receives because of scarce economic skills--the added pay he receives as an actor relative to what he would earn in his next-best occupation.
 
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