Final answer:
The difference between an average and peak performer lies in factors like optimal stress levels and motivation, which affect focus and efficiency. Salaries also vary greatly among high-skilled individuals due to global demand for top performers.
Step-by-step explanation:
When skill levels are equal, the difference between an average performer and a peak performer typically boils down to factors such as motivation, resilience, the ability to work under pressure, and the degree of arousal or stress they experience. Research indicates a moderate level of arousal typically leads to the best performance, as extremely high or low arousal can either lead to decreased focus or feelings of being overwhelmed, respectively.
On the other hand, a peak performer is able to find the optimal level of stress that allows for maximum efficiency and focus without tipping into distress.
Winner-take-all labor market theory suggests that the discrepancy in salaries among individuals with similar educational backgrounds can largely be attributed to the global demand for high-skilled 'stars' in their fields, whether they're CEOs, doctors, or athletes, which can push their earnings well above those of their average counterparts.