The Hedonic Theory of Wages Predicts That

question 14

Multiple Choice

The hedonic theory of wages predicts that:

• A)workers and firms will be matched randomly,but in equilibrium firms will be maximizing profits and workers will be maximizing utility
• B)other things equal,workers who value job safety least will tend to work for firms that have the lowest cost of providing safe jobs
• C)other things equal,workers who value job safety least will tend to work for firms that have the highest cost of providing safe jobs
• D)other things equal,workers who value job safety most will tend to work for firms that have the highest cost of providing safe jobs

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