A Certain City Has Two Kinds of Workers, Alphas and Betas

question 26

Multiple Choice

A certain city has two kinds of workers, alphas and betas. An alpha can produce $100 worth of output per day working for himself. If he works in the local factory, he produces $120 worth of output a day. A beta produces $60 worth of output per day working for himself, and he produces $80 worth of output per day if he works for the local factory. Workers either work for themselves or work in the factory. The factory owner can't tell alphas from betas. He pays a wage equal to the average product of his labor force and he has at least some alphas working for him. Workers are free to choose to work for themselves or the factory, depending on which offers more money.

• A) At leastof the factory's employees must be alphas.
• B) At least half of the factory's employees must be betas.
• C) At least half of the factory's employees must be alphas.
• D) None of the factory's employees can be betas.
• E) No more thanof the betas can work in the factory.

---

Definitions:

Environments

The surroundings or conditions in which a person, animal, or plant lives or operates, including natural, social, cultural, and built facets.

Special Adjustments

Modifications or changes made to financial statements or business strategies to address specific issues or to better reflect economic realities.

Geographical Adjustments

Adjustments made to policies, prices, or strategies based on the geographical location of markets or resources.

Discounts

are reductions from the usual cost of something, often used to prompt sales or as a negotiation tactic.