Suppose All Workers Are Identical but Working for Ajax Is

question 230

Multiple Choice

Suppose all workers are identical but working for Ajax is more pleasant than working for Acme. In all other nonwage aspects, the two firms offer the same job characteristics. We would expect

• A) wage rates at Ajax to be higher than at Acme.
• B) wage rates at Ajax to be lower than at Acme.
• C) wage rates at Ajax and Acme to be the same.
• D) workers at Ajax would have to be monitored more closely than those at Acme.

---

Definitions:

Floor Space

The total area available for use within a building or premises, often considered in retail and real estate contexts.

Direct Expense

Costs that can be directly tied to the production or sale of specific goods or services.

Indirect Expense

Costs that are not directly tied to a specific product or service, such as utilities or rent for a company.

Insurance

A financial product that provides protection against losses or damages, in exchange for premium payments.