An employer faces two types of employees. Regular workers are 70% of the population and generate $100,000
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Question:
An employer faces two types of employees. Regular workers are 70% of the population and generate $100,000 in productivity. Exceptional workers are 30% of the population and generate $120,000 in productivity. Employees know their types and reject salaries below their productivity. If the employer offers a salary equal to the average productivity in the population, what will be the employer's per-employee profit?
a. $10,000
b. $6,000
c. $0
d. $4,000
Related Book For
Intermediate Microeconomics and Its Application
ISBN: 978-0324599107
11th edition
Authors: walter nicholson, christopher snyder
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