Suppose all workers are identical but working for Ajax is more pleasant than working for Acme....
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Suppose all workers are identical but working for Ajax is more pleasant than working for Acme. In all other nonwage respects, the two firms offer the same job characteristics. In equilibrium, a) the wage at Ajax will be higher than at Acme. b) the wage at Ajax will be lower than at Acme. c) workers will have lower net utility at Acme. d) employment will be higher at Ajax if demand is the same in both markets. Suppose all workers are identical but working for Ajax is more pleasant than working for Acme. In all other nonwage respects, the two firms offer the same job characteristics. In equilibrium, a) the wage at Ajax will be higher than at Acme. b) the wage at Ajax will be lower than at Acme. c) workers will have lower net utility at Acme. d) employment will be higher at Ajax if demand is the same in both markets.
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a The wage at Ajax will be higher than at Acme In this scenario where all workers are identical but ... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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