Paying efficiency wages means that wages are
a. above equilibrium, and profits are higher than otherwise.
b. above equilibrium, and profits are lower than otherwise.
c. below equilibrium, and profits are higher than otherwise.
d. below equilibrium, and profits are lower than otherwise.
a
You might also like to view...
Suppose that in the market for paper, demand is p = 100 - Q. The private marginal cost is MCp = 10 + Q. Pollution generated during the production process creates external marginal harm equal to MCe = Q
What specific tax would result in a competitive market producing the socially optimal quantity of paper?
What type of good is clean air?
A) Rival and exclusive B) Nonrival and exclusive C) Rival and nonexclusive D) Nonrival and nonexclusive
Assume that there was a 5 percent increase in the price of all goods in 2015; if the base year is 2014, then the price index in 2015 will be
A) 95. B) 105. C) 110. D) 1100.
Given the same marginal revenue product (MRP) and supply curves, the equilibrium quantity of labor employed in a monopsonistic labor market will be:
a. equal to that in a competitive labor market. b. less than that in a competitive labor market. c. greater than that in a competitive labor market. d. there is insufficient information for a conclusion.