Suppose All Workers Are Identical but Working for Ajax Is

question 22

Multiple Choice

Suppose all workers are identical but working for Ajax is more pleasant than working for Acme.In all other nonwage respects the two firms offer the same job characteristics.In equilibrium:

• A)the wage at Ajax will be higher than at Acme
• B)the wage at Ajax will be lower than at Acme
• C)workers will have lower net utility at Acme
• D)employment will be higher at Ajax if demand is the same in both markets

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Definitions:

Foot-In-The-Door Effect

A persuasive technique whereby agreeing to a small request increases the likelihood of agreeing to a second, larger request.

Polarization Phenomenon

The process where a group or individual's opinion becomes more extreme after discussion within the group, leading to more significant division.

Straight A Student

A student who achieves the highest possible grades in all their courses.

Strict Parents

Parents who enforce rigid rules and demand high levels of obedience from their children, often employing stricter disciplinary measures.