-City-Mart Is the Only Employer of Sales Clerks in Panburg

question 69

Multiple Choice

-City-Mart is the only employer of sales clerks in Panburg. In the figure above S is the labor supply curve faced by City-Mart, VMP is City-Mart's value of marginal product curve, and MCL is its marginal cost of labor curve. City-Mart sales clerks' wage is ________ it would be if the labor market were competitive.

• A) $3 per hour higher than
• B) $3 per hour lower than
• C) $6 per hour lower than
• D) the same as

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience within an organizational or social hierarchy.

Coercion

The act of compelling or forcing someone to act in a certain way by use of threats or pressure.

Ingratiation

A psychological technique where an individual attempts to become more attractive or likable to another, often through flattery or other means.

Reward Power

A form of control where a person or entity uses rewards or incentives to encourage desired behaviors.