This document was received by the Digital Commons on May 12, 2008 and posted on May 13,2008. Original document was submitted as an honors thesis requirement. Copyright is held by the author.

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The purpose of this paper is to determine if LeBron James has made the Cleveland Cavaliers basketball team a more profitable business since joining the team in 2003. The principles of labor economics will be applied in determining the marginal revenue product of LeBron James and its relationship to the profits of the Cavaliers. It is the premise of this paper that proper utilization of one input can positively affect a firm’s profitability. An understanding of such a concept can be very useful in showing firm’s how to manage and employ labor in their pursuits of increased revenues.