The Firm's Wage-Fringe Isoprofit Curve Typically Has a Slope Less

question 1

Multiple Choice

The firm's wage-fringe isoprofit curve typically has a slope less than 1 (absolute value) because:

• A)fringe benefits confer tax advantages on workers
• B)on average,it costs firms more to purchase fringe benefits than workers
• C)the composition of fringe benefits may increase worker productivity
• D)increasing the proportion of compensation received as fringe benefits reduces a firm's profit level

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Definitions:

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The biochemical process by which organisms produce vitamin E.

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A type of sweat gland found throughout the body that regulates body temperature by releasing a watery sweat onto the surface of the skin.

Sebaceous Gland

A small oil-producing gland present in the skin of mammals, which secretes sebum into the hair follicles to lubricate the skin and hair.

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A dynamic organ located in the dermal layer of the skin, from which hair grows, and is a site for sebaceous glands and nerve endings.