Let's make the following change to the model of workplace responsibilities discussed in Section 21.3: Assume that

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Let's make the following change to the model of workplace responsibilities discussed in Section 21.3: Assume that more able workers find tasks more tiring (perhaps because they have less tolerance for tedious make-work). Draw a new figure like Figure 21.9, showing the relationship between the indifference curves of high-ability and low-ability workers. Are there any separating equilibria? Upon what does your answer depend? Explain using graphs.
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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