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:

Income Distribution

The way in which total income is shared among the population or different groups within the society.

In-kind Benefits

Non-cash assistance provided by governments or organizations, such as food, housing, or medical services, aimed at improving welfare.

Normative Concept

An idea or standard that prescribes how things should be or what people ought to do, often based on values or ethical considerations.

Political Process

The methods and procedures used in the operation and governance of a political entity or organization.