Late-Night Employees Working in a 24-Hour Store Often Earn More

question 56

Multiple Choice

Late-night employees working in a 24-hour store often earn more than similar employees who work the day shift.What explains this difference in pay?

• A) life-cycle wage pattern
• B) human capital theory
• C) occupational crowding
• D) negative compensating differential
• E) positive compensating differential

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Definitions:

Marginal Cost Curves

A graphical representation that shows how the marginal cost of producing an additional unit changes with the quantity produced.

AVC

Average Variable Cost, which is the variable cost per unit of output.

Long-run Equilibrium

A state in which all factors of production and costs are variable, leading to a situation where economic profits have been normalized or eliminated due to competition.

Constant Costs

Costs that do not change with the level of output or activity within a certain range.