Scenario: Edward Has Inherited a House

question 101

Multiple Choice

Scenario: Edward has inherited a house. As the house is far away from where he lives currently, it has been vacant for the past few years. A housekeeper is paid regularly to look after the house and keep it clean. However, because Edward seldom visits the house, the housekeeper does not clean the house regularly.
-Refer to the scenario above.What can Edward do to induce the housekeeper to work regularly?

• A) Pay an efficient wage
• B) Pay a low wage
• C) Pay the wage that equals the marginal revenue product of the housekeeper
• D) Pay the minimum wage that the housekeeper would accept

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